I will focus my remarks on two related topics that have emerged as a consequence of the crisis. The first is the relation between monetary policy and fiscal policy. The second topic involves the role of a central bank’s balance sheet as a policy tool. These are issues that I believe are of fundamental importance to the role of central banks in our economies.
The banking sector boasts of two exclusively Sharia compliant banks. As at the financial year ended December 31, 2010 the two banks collectively commanded a market share of 0.9% of the banking sector with gross assets of Ksh.16.54bn, net loans and advances of Ksh.9.23bn and deposits of Ksh.13.76bn.