This is in response to the regional expansion by businesses resulting from the drive towards integration. BIS Review79/2009  1  The five East African Central Banks therefore signed a Memorandum of Understanding (MOU) early this year. The MOU will facilitate information sharing and supervisory cooperation amongst the Central Banks particularly for regional banking groups.
This arrangement will serve to mitigate cross border risks that regional banking groups may pose to the financial sectors of the East African countries. On the domestic front, banks are also venturing into capital markets, insurance and the retirement benefits sectors. Supervisory co-operation and co-ordination is therefore also paramount for effective regulation and supervision of domestic financial conglomerates.