The CBK is strengthening the banking sector to ensure greater transparency and stronger governance, and also to promote effective business models and innovation. The Central Bank continues to engage with financial service providers to introduce innovative solutions or products in the market in order to boost financial inclusion and lower the cost of financial services.
This is because part of the consequences of lax fiscal policies, in the form of higher real interest rates, will be borne by all the other participants in the monetary union. Thus, in order to avoid such spillovers to countries pursuing sound fiscal policies, a fiscal framework is required, even more so than in the case of an individual country.