njuguna ndung ’ u : developments in the banking sector in kenya remarks by prof njuguna ndung ’ u, governor of the central bank of kenya, at the official opening of standard chartered bank kenya limited ’ s head office, nairobi, 20 june 2011. * * * your excellency honourable mwai kibaki, president and commander - in - chief of the defence forces of the republic of kenya ; honourable uhuru kenyatta, deputy prime minister and minister for finance ; mr. john peace, group chairman of the board of directors, standard chartered bank ; mr. peter sands, group chief executive officer, standard chartered bank ; mr. wilfred kiboro the chair of the board of the standard chartered bank kenya ; mr. richard etemesi, chief executive officer, standard chartered bank kenya ; board members present ; staff of standard chartered bank kenya ; distinguished guests ; ladies and gentlemen : i am delighted to join you on this auspicious occasion in celebrating standard chartered bank kenya ’ s 100th anniversary. it is indeed a momentous achievement for the bank and perhaps to plan for the next 100 years will even be more exciting. may i take this opportunity to appreciate the presence of his excellency the president which gives this function great significance and importance. let me also commend the board, management and staff of standard chartered bank for steering the institution from its formation in 1911, and for successfully providing financial services to kenyans for the last 100 years. over the years, the bank has achieved several milestones with a number of strategic alliances and acquisitions. these milestones have extended the customer base, geographic reach and broadened the product range that standard chartered offers. the bank has strongly focused on developing its franchises in asia, africa and the middle east through concentration on consumer, corporate and institutional banking. in kenya, the bank focuses on two core business divisions, wholesale banking and consumer banking. with regard to its financial operations in kenya, the bank as at march 2011, was among the top 6 banks with an asset portfolio of ksh. 149 billion, thereby commanding a market share of 7. 9 percent. customer deposits stood at ksh. 105 billion being supported by a capital base of ksh. 21 billion, while loans and advances amounted to ksh. 72 billion. your excellency : despite various shocks that have hit the economy in recent years, the banking sector continues to exhibit resilience. the sector grew by 8. 8 % in 2010

. finally, i would like to stress that the european authorities, including the eurosystem, do everything to stem the sovereign debt crisis. countries conduct rigorous economic reform programs : to regain the trust of financial markets, improve economic growth, restructure banking sectors and strengthen public finances. these measures contribute to a more sustainable debt situation, although the challenges are huge in certain countries. the esm will only reinforce the need for fiscal and macro economic discipline and stronger governance with more automatic mechanisms. the alternative of default would have much graver consequences, with unforeseen, but probably serious first and second round effects on the financial system across the euro area. this is precisely what policymakers are preventing with unprecedented measures. bis central bankers ’ speeches