IMF国际货币组织全球-Kenya_Technical-Assistance-Report_20页_645kb

Kenya: Technical Assistance Report on Monetary and Financial Statistics (December 3-14, 2018)

Core Content

This report outlines the findings and recommendations of a monetary and financial statistics (MFS) technical assistance mission to Kenya, conducted in December 2018. The mission aimed to review the implementation of previous recommendations, expand the coverage of standardized report forms (SRFs), and provide training to improve MFS compilation.

Main Objectives

• Review the implementation of the 2017 MFS mission recommendations.
• Expand the coverage of the SRF 2SR (Other Depository Corporations) to include SACCOs and MFBs.
• Develop the SRF 4SR (Other Financial Corporations) for insurance companies and pension funds.
• Improve the adequacy of data for the remaining institutions in the OFCs subsector.
• Provide a three-day training session on MFS compilation and the Balance Sheet Approach (BSA).

Key Institutions Involved

• CBK (Central Bank of Kenya): Primary authority responsible for compiling and reporting MFS data.
• SASRA (SACCO Societies Regulatory Authority): Regulates SACCOs.
• IRA (Insurance Regulatory Authority): Regulates insurance companies.
• RBA (Retirement Benefits Authority): Regulates pension funds.
• CMA (Capital Markets Authority): Regulates investment funds.
• KDIC (Kenya Deposit Insurance Corporation): Provides data for banks in liquidation.

Main Findings

1. Progress Made

• The CBK has made significant progress in collaborating with other financial sector regulators.
• A Technical Working Group (TWG) was established in January 2018 to improve the quality and timeliness of monetary data.
• The TWG meets quarterly and has improved the regularity and quality of data submission.
• The CBK has started receiving monthly source data from SASRA for SACCOs and monthly data from MFBs, with the same timeliness as commercial banks.
• Source data for insurance companies and pension funds are now submitted quarterly by IRA and RBA, respectively.

2. Data Quality and Methodological Issues

• Some minor misclassifications in source data were identified, particularly for SACCOs and pension funds.
• Guaranteed funds are reported by both pension funds and insurance companies, leading to potential double counting in MFS compilation.
• Investment funds (including MMFs and non-MMF funds) are not yet fully included in MFS data, and their classification needs to be addressed.

3. Financial Sector Overview

• Commercial banks dominate the financial system, with total assets of KSh 4,933 billion (about 70% of the total financial sector assets excluding the CBK).
• SACCOs (174 institutions) and MFBs (13 institutions) are also significant in the ODCs sector, with total assets of KSh 487.5 billion and KSh 78.6 billion, respectively.
• Pension funds (1,277 institutions) have total assets of KSh 949.1 billion, while insurance companies (56 institutions) have KSh 625.0 billion in total assets.
• Non-MMF investment funds (16 institutions) and non-deposit-taking SACCOs (2,286 institutions) are smaller in size but still part of the financial system.

Priority Recommendations

Key Issues Identified

• Misclassification of institutional sectors and financial instruments in source data.
• Inconsistent data for SACCOs prior to January 2015.
• Need for estimation methods to include data for banks in liquidation.
• Double counting of guaranteed funds in pension fund data.
• Inadequate historical data for some financial institutions, requiring interpolation methods.

Training and Methodology

• A three-day training session on MFS methodology and analytical uses (including the BSA) was conducted.
• The BSA matrix was used to illustrate the interlinkages between financial and non-financial sectors, enhancing understanding of data importance and analytical value.

Conclusion

The mission emphasized the importance of the TWG and regular data sharing among financial sector regulators to improve the quality and coverage of MFS data. Continued collaboration and methodological refinement are necessary to ensure the accuracy and completeness of monetary and financial statistics in Kenya.