While I have pointed out the positive aspects of these developments, there is concern that investors and other stakeholders will find it increasingly difficult to understand the risk positions of large, complex organizations that use these mechanisms to alter risk exposures.
e. Horizontal Repurchase Transactions (Horizontal Repos) – In September 2008, the interbank repo backed by government securities as collateral was rolled out to facilitate liquidity re-distribution among commercial banks. However, uptake has not been vibrant, but the CBK is working on modalities that will resolve market constraints so far raised by participants.