Measures to stabilize financial markets: promote recovery from the “acute symptom”  The stabilization of financial markets benefits the economy because the effects of monetary policy spread to the economy through financial markets. With the failure of Lehman Brothers, confidence in the overall financial market was suddenly undermined and the functioning of the market deteriorated substantially.
The Central Bank renders its full support to this project and we expect that all banks will also commit to implementing all the agreed milestones. Credit information sharing offers Kenya an opportunity to promote access to affordable credit to more Kenyans because information lowers the risk premium and search costs.