Ladies and Gentlemen: The output from this meeting will provide a framework to enhance effective supervision of the KCB Group. It will also set precedence for the supervision of other banking groups with cross border operations. I acknowledge the presence of KCB Management who I am informed will showcase their strategy and operational plans.
Financial institutions were burdened by a huge amount of nonperforming loans (NPLs) and there was strong concern about the stability of the financial system. In this situation, a risk of the economy falling into a vicious circle of falling prices and deteriorating economic activity, in other words a deflationary spiral, was also a concern.