Your Excellency, Ladies and Gentlemen, the recent financial crisis has shown that although financial integration improves access to financial markets and the opportunities for risk diversification, it may also increase the scope for financial contagion effect across countries.
In this regard, EAC Central Banks must ensure that financial stability arrangements keep pace with the degree of financial integration; strengthen supervisory capacity and financial sector resilience; and, ensure adequacy of capital and liquidity buffers. Ladies and Gentlemen, financial stability requires a concerted effort by key stakeholders. It is therefore important for EAC Central Banks to strengthen synergies with other financial sector players.