In this context, let me briefly recall some of the key areas in which the report has identified room for improvement: (i) some aspects of the prudential framework, relating to capital and liquidity risk as well as to banks’ liquidity risk management practices; (ii) transparency, including full disclosure of banks’ exposures on structured products and off-balance sheet vehicles; (iii) valuation standards, especially as regards marking-to-market illiquid assets; (iv) market functioning, including possible conflicts of interest of credit rating agencies and their  BIS Review 125/2008  9  role in rating structured finance instruments; and (v) authorities’ responsiveness to risks and arrangements for crisis management.
Allow me from the onset, to extend a cordial welcome to you all on behalf of the Government of Kenya. We are indeed honoured and happy to host this important activity here in Nairobi, Kenya. I would like also to extend a very special welcome to the delegation from MEFMI. We are honoured to host one of your capacity building events this year.