general terms because it very much depends on each ccp. they have different business models, face different risks and evolve in different environments. so i personally wish we could move gradually to an approach that is closer to the one we have in banking supervision, if we use stress testing to inform supervisory requirements. i would be very much in favour of the concept of a “ pillar ii ” for ccps. we would have pillar i requirements that would be standardised across ccps, and we would have a pillar ii, which would be decided by the competent supervisor and informed by the outcome of the stress test. to me, that ’ s the way forward. it will take some time to take shape and, in the meantime, we should restrain ourselves from approaches to financial resources of ccps that are too simplistic and standardised. bis central bankers ’ speeches

collateral process, central bank, kenya bankers association ( kba ) and financial sector deepening ( fsd ) kenya commissioned a study aimed at reviewing the cost associated with collateral in the credit granting process. the study brought forward some invaluable insights on the intricacies surrounding the collateral process and recommendations which when implemented will result in both cost and time reduction. provision of long - term finance : a small committee to look into development banking products was formed in february 2010 to explore avenues through which development banking products, also referred to as “ long - term financing products ”, can be introduced into the market. this was necessitated by several reasons, among them ; the commercial banks credit market structure that focuses more on short term loan maturities ; the moribund development financial institutions ; the opening opportunities with flow of international funds that are intermediated by local institutions ; and the need to develop the bonds market. the basic question : how can we lengthen the maturity profile of term loans to 5 – 10 years for smes? interactions with market players : since september 2009, the mpc has been holding regular meetings with the chief executive officers of commercial banks to brief them on the background to its decisions in the bi - monthly meetings. the meetings are part of a wider strategy to enhance the transmission of monetary policy decisions to the real sector through feedback, sensitization of the market on the activities of the mpc, as well as engaging banks on the need to lower the cost of credit in order to support economic growth. 5. on the market front, the central bank of kenya, the capital markets authority and the nairobi stock exchange undertook significant reforms in the domestic bond market. these reforms included introduction of an automated trading system aimed at enhancing the safety and efficiency in the processing of secondary trading of government securities as well as corporate bonds in the market. the move is also expected to improve market liquidity thereby encouraging more investors to participate in the bond market. this development fits in very well with the aspirations of the capital markets development as envisaged in vision 2030. 6. we have accomplished much since we last met, but a lot more remains to be done to expand the depth and breadth of the financial sector. i am sure that together as the financial sector regulators we shall seek the necessary synergies to foster a safe, sound, efficient and inclusive financial system. but more demands as the eac monetary union shapes up will be coming to us. 7. being cognisant of the onerous