, has been at the fore - front of pushing the financial inclusion agenda. the support we have received from the bill and melinda gates foundation and afi has been enormous on these initiatives. 7. the critical mandate of the central bank is to ensure that the financial sector is stable, efficient and accessible. in this regard, the central bank of kenya, jointly with other players, has undertaken several initiatives and reforms aimed at boosting bis central bankers ’ speeches financial inclusion through an appropriate financial infrastructure that includes : licensing of deposit taking microfinance institutions ( dtms ) and credit reference bureaus ( crbs ) ; mobile phone financial services and the agency banking model. 8. ladies and gentlemen ; these initiatives and reforms have led to notable improvements in the levels, reach and depth of access to financial services especially among the lower population segments. the results in terms of numbers are astounding with deposit accounts growing tremendously over the years. but such a vibrant sector requires to be safeguarded ; that is why financial integrity becomes important. financial integrity 9. ladies and gentlemen ; success in financial inclusion has to go hand in hand with financial integrity. the central bank of kenya continually seeks to enhance the regulation and supervision of the financial system in order to improve its integrity. as part of our efforts in ensuring appropriate and effective oversight, we first issued aml guidelines in 2000. these guidelines were revised in 2006 and are currently in the process of being reviewed to reflect the prevailing international best practice and to align them with the proceeds of crime and anti - money laundering act, 2009 ( pocamla ). 10. over the last 2 years, the central bank has issued regular aml / cft guidelines to financial institutions to further support and enhance the implementation of the proceeds of crime and anti - money laundering act, 2009 ( pocamla ). the guidelines have covered the operationalization of the aml act, suspicious transaction reporting, and measures to be adopted by financial institutions to combat the financing of terrorism. the central bank has also revised the forex bureau guidelines so as to align these guidelines to the aml act. we are also working on hawala system to formalize and issued guidelines. on the microfinance front, the microfinance regulations and the agency guidelines require deposit taking microfinance institutions and their agents to implement aml / cft measures. 11. these measures demonstrate that as we push the frontiers of financial inclusion, we are also taking the requisite steps to ensure that the measures put in

63. m. feroli, a. k. kashyap, k. l. schoenholtz, and h. s. shin, “ market tantrums and monetary policy, ” chicago booth research paper no. 14 – 09, 2014. morgan stanley and oliver wyman blue paper, wholesale & investment banking outlook, 19 march 2015. financial stability board and basel committee on banking supervision, “ assessing the macroeconomic impact of the transition to stronger capital and liquidity requirements, ” final report of the macroeconomic assessment group, december 2010, available at http : / / www. bis. org / publ / othp12. pdf ; bank of canada, “ strengthening international capital and liquidity standards : a macroeconomic impact assessment for canada, ” special report, august 2010, available at http : / / www. bankofcanada. ca / wpcontent / uploads / 2010 / 09 / report. pdf. bis central bankers ’ speeches financial market operations and emergency lending policies. these two papers can be found on our website. 16 my colleague, deputy governor lynn patterson, will talk in detail about initiatives relating to the bank ’ s market operations in a speech in vancouver next week. let me walk you through the highlights, while stressing that you should infer nothing from these proposals for the current or future stance of monetary policy. first, the bank is proposing to reduce the amount of benchmark government bonds we buy at government bond auctions for our own balance sheet. this will help liquidity by increasing the amount of such newly issued securities that will be available to other buyers. for its part, the bank will buy some of the assets we need in the secondary market for government bonds. second, we are exploring changes to our securities - lending program. this would assist primary dealers that contribute to market liquidity but that need to borrow securities, while still encouraging the market to clear itself. finally, we intend to set up a regular program of term repo operations that will not only help us manage our balance sheet, but also give us timely insight about liquidity conditions in short - term funding markets. these steps will all help markets in normal times. but we need to be ready for when times aren ’ t so normal. we ’ re using this period of relative calm to sharpen our tools that could be used in any future periods of stress. during the crisis, the bank set up a temporary term repo facility that