The traditional challenges of the moral hazard and adverse selections can hinder financial sector growth.   Licensing of deposit taking microfinance institutions (DTMs), whose focus is the lower end of the market, which is concentrated in the rural and periurban areas. The Microfinance Act, 2006, which empowers CBK to licence and supervise DTMs, was operationalised in 2008.
One important issue was whether the conduct of money market operations should be decentralized, as Jean-Claude Trichet, then governor of the Banque de France, advocated, or whether it should be centralized, as Alexandre Lamfalussy and Hans Tietmeyer, president of the Bundesbank argued.