They have been common in the lead-up to financial crises in advanced economies in recent decades.17 The purpose of macro-prudential policy is to lean against these time-varying risks. Our objective is to address emerging systemic risks by increasing the resilience of the domestic financial system and countering instability that arises from credit, asset price or liquidity shocks.
Lower global economic growth, with the centre of economic gravity shifting towards emerging and frontier markets especially in Asia, Africa, and Latin America;  4. Currency wars with potential for emerging markets currencies entering the accepted reserve currency range. These impending structural changes pose a number of challenges to emerging markets, including Kenya.