FINANCIAL REGULATIONS-USIU

FINANCIAL REGULATIONS In Kenya, the key financial regulators are; the central bank of kenya, retirement benefits authority, insurance regulatory authority, SASRA and capital markets authority. For each of these regulators, identify their jurisdictions, objectives, roles, responsibilities and objectives as regulating agents. 1. The Central Bank of Kenya JURISDICTION AND RESPONSIBILITY An Act of Parliament to establish the Central Bank of Kenya and to provide for the operation thereof; to establish the currency of Kenya and for matters connected therewith. Central banks are responsible for overseeing a country's or group of countries' monetary system, as well as a variety of other responsibilities ranging from monetary policy oversight to implementing specific goals such as currency stability, low inflation, and full employment. OBJECTIVES OF CBK OF KENYA The Central Bank of Kenya's regulations and guidelines impose certain requirements, restrictions, and guidelines on banks. Given the interconnectedness of the banking industry and the national (and global) economy's reliance on banks, it is critical for regulatory agencies to maintain control over these institutions' standardised practices. These regulations' goals are as follows: 1. Prudent—to reduce the level of risk to which bank creditors are subject (i.e., to protect depositors) 2. Systemic risk reduction—the reduction of the risk of disruption caused by adverse trading conditions for banks, which could result in multiple or major bank failures. 3. Avoid bank misuse—to reduce the risk of banks being used for criminal purposes, such as laundering criminal proceeds. ................................CONTINUED.............................