Financial regulation is a subject that is more often than not regarded as distant and yet another level of bureaucracy that has to be endured by both the public and private sectors. The significance of creating and maintaining an efficient and effective system to regulate financial markets, financial institutions and financial service providers is a salient feature in the development of a country’s economic health. The recent global economic crises of 2007/2008 and the economic hurdles accompanying those events are perhaps the most dramatic instances of how necessary the implementation of efficient and effective financial regulation is. The international financial system has experienced a retinue of changes in the last two decades. One of the main challenges of financial regulators has been to keep abreast of as well as adapt to these changes, which are of an international nature. In a majority of countries, the financial sector is one of the most intensely regulated and supervised industries. Over a period of time, it has become evident that regulatory arrangements have a formidable impact on: i. The size, structure and efficiency of a financial system; ii. The business operations of financial institutions and markets; iii. Competitive conditions both overall and between sub-sectors of the system. The impact of regulation can either be stagnant or progressive; this depends on how the objectives of regulation are defined and how efficiently regulatory arrangements are related to their objectives. The issue at hand is to engage regulatory institutions, structures and mechanisms for supervision and enforcement need to be implemented because they are pertinent to the formal regulatory requirements in the overall regulatory regime. Effective financial regulation would be unable to exert its objectives in the absence of efficient supervision and enforcement. In numerous countries the institutional structure of regulation has experienced change or is in the process of change. Different models of institutional structure are availed such as the single/consolidated model, the twin-peak model and the multiple regulator model. For example, the United Kingdom has embraced the single/consolidated regulator model while Australia has employed the twin-peak regulator model. Kenya operates on the multiple regulator model. This report addresses the role of financial regulators in the Kenyan economy. The objectives of the research are to: Provide comprehensive information about the theory and practice of financial regulation; Identify the financial regulators in Kenya and define their roles; Address the issue of multiple regulators and the duplicity of roles; Discuss international trends in regulation and examine different regulatory regimes; Consider the viability of a single/consolidated regulatory regime in Kenya; Suggest a possible future regulatory regime for Kenya and identify the key issues associated with such a regime; Suggest areas for further investigation and research.The approach of this report will constitute the following: Chapter 1 discusses the rationale for the research, objectives, scope and scale of the research, preliminary literature review and the research methods to be employed. Chapter 2 focuses on financial regulatory systems in general as well as an extensive analysis of financial regulators in Kenya. Chapter 3 combines the research methods employed and also contains a comparative analysis of the regulatory regime. Chapter 4 examines the findings of the research, the lessons learnt and the regulatory responses. Chapter 5 includes recommendations towards improvement of regulatory systems and an executive summary of outstanding policy issues and priorities in Kenyan financial regulation.
| Identifer | oai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:nmmu/vital:26886 |
| Date | January 2013 |
| Creators | Khakali, Linda Anyoso |
| Publisher | Nelson Mandela Metropolitan University, Faculty of Business and Economic Sciences |
| Source Sets | South African National ETD Portal |
| Language | English |
| Detected Language | English |
| Type | Thesis, Masters, MA |
| Format | 99 leaves, pdf |
| Rights | Nelson Mandela Metropolitan University |
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