The main objective of the initiative is to develop a vibrant market, to promote and uphold professionalism, enhance high ethical standards, foster self-regulation and above all keep the line of engagement with the regulator alive so that market vulnerabilities or any challenges can be addressed. For these reasons, membership to the KFBA has been made mandatory and a pre-requisite for license renewal. 7.
Reacting to the crisis – a classification of central bank measures  Economic policy reacted by trying to short-circuit the mechanisms that had amplified the initial losses and propagated their impact through the entire economy (Blanchard 2009). The threat of insolvency was countered by private and public capital injections for systemically important financial institutions. Additional liquidity was provided to accommodate higher liquidity demand.