Markets regulator, KIDC restart talks on bonds cushion : vim

Markets regulator, KIDC restart talks on bonds cushion


Markets regulator, KIDC restart talks on bonds cushion
Tuesday May 04 2021
By CONSTANT MUNDA
The Capital Markets Authority (CMA) has entered fresh talks with the Kenya Deposit Insurance Corporation (KIDC) and the Central Bank of Kenya (CBK) to end the stalemate on plans to compensate bondholders if a bank goes bust.
The capital markets regulator said on Monday talks on amending the Deposit Insurance Act to allow for such reimbursements are now “progressing well” after a two-year deadlock.
The proposed legal changes, the CMA reiterated, are aimed at ensuring “investments by retail and institutional investors through corporate bonds are separated from customer deposits and other bank liabilities in instances where a financially distressed bank has issued a corporate bond”.

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