of minimum balances has supported financial reach. banks have taken their services to the customers due to increasing competition and improvements in the delivery channels. banks are opening and re - opening branches in areas with none or few branches. efficiency is achieved when there are strong institutions with requisite capacity to satisfy market needs while complying with statutory and prudential requirements. ladies and gentlemen : one of the main challenges of monetary policy has been the presence of currency outside banks. in march 2008, it was ksh. 9 billion above the central bank target. however, in march 2010 it was ksh. 4. 9 billion below cbk target as a result of banks increased coverage of rural and low income areas. ladies and gentlemen ; financial sector reforms are far from being accomplished. given the changing dynamics of the economy and its growing complexities, the financial industry has to remain responsive and supportive of the broader economic ambitions and agenda. all the major players and stakeholders in the banking system will have to strive for continuity, broadening and deepening of reforms ; build and sustain the already implemented reforms and fill the remaining gaps. the growing competition along with increasingly diversified services both across the regions and sectors, as well as improved access to customer - base on the back of progressive reliance on technology, are the harbingers of the changing and efficient intermediation role of banks in the days ahead. the central bank is committed to reforms in the banking industry towards enhanced competitiveness. in line with this, the central bank has earmarked amendments to the banking act and microfinance act going forward. the amendments to the banking act and microfinance act are expected to further enhance efficiency and competitiveness of our financial sector. cbk in collaboration with the government and the market players will enhance its efforts in addressing other structural rigidities that contribute to market inefficiencies to take stock of developments as well as other emerging constraints. before i conclude, ladies and gentlemen, let me once again take this opportunity to reiterate the critical role of the financial sector in africa ’ s economic development. this potential can only be realized when african policymakers implement reforms to remove binding constraints in the sector. i am sure that in this gathering we have the capacity to identify those constraints to unleash africa ’ s potential. finally, i do hope that you will find time in your busy schedules to enjoy our world renown beaches. i wish you fruitful deliberations. thank you!

joachim nagel : germany - generally healthy, but facing challenges keynote speech by dr joachim nagel, president of the deutsche bundesbank, at the capital city reception, berlin, 17 october 2023. * * * check against delivery. 1 germany : the " sick man " of europe? ladies and gentlemen, the bundesbank's capital city reception is an event where you would normally expect to spend a carefree evening and hear the bundesbank president tell you something about inflation and monetary policy. that is as this evening should be. however, looking at the situation in the middle east, i find it difficult to start with " business as usual ". ten days ago, terrorists killed hundreds of people in israel with the utmost brutality. more than 260 visitors died in the re'im music festival massacre alone. there's hardly anyone in israel who isn't mourning the death of friends or relatives, hoping that injured people will recover, anxiously awaiting the fate of loved ones taken hostage. i join them in their mourning, hopes and anxiousness. and i wish to pledge my solidarity here and now with the people of israel. for ten days now, the world has been a different one. violence has reached a new level. my thoughts are with all those who are suffering through no fault of their own from the outbreak of violence. ladies and gentlemen, almost exactly a year ago, at the bundesbank's last capital city reception, the inflation rate stood at more than 10 %. since then, inflation has fallen back significantly, thanks in part to the eurosystem's forceful response. the monetary policy measures are yielding results. however, inflation remains high. along with uncertainty. on the governing council of the ecb, we discuss and assess developments in economic activity and the inflation outlook. the decisions we take there are data - dependent. but that's all i wish to say about the current monetary policy stance. you see, today's topic is a different one : germany's prospects as a business location. anyone who has been following the news in recent months won't have missed the stories about the return of germany as the " sick man ". if things did not change soon, they said, germany faced the risk of " deindustrialisation ". this discussion mainly gained traction on the back of the weak growth figures since the last quarter of 2022. forecasts by all manner of institutions suggest that germany is the only major industrialised