The first bank in Kenya was established in 1896, to facilitate sending money home by Indian workers that were building the railway through Kenya, and also to support trade in the Europe-South Africa-India axis. A lot has changed since then. A hundred years ago, remittances depended on the movement of a written instruction over sea and land.
Consistent with this position, we will be developing a regulation that would establish minimum haircuts for securities financing transactions (SFTs) on a market-wide basis, rather than just for specific classes of market participants. SFTs include repo, reverse repo, securities lending and borrowing, and securities margin lending – transactions that are the lifeblood of many kinds of shadow banks.