Regulatory Alerts2020-03-27
Guidance Note to the Banking Sector on Pandemic Planning
Here is a possible interpretation of the provided Guidance Note for Kenya's Banking Institutions concerning Pandemics. This interpretation aims to provide a clear understanding of the key elements required by banking institutions when preparing their pandemic response plans. 1. Governance: The guidance requires that institutions establish, implement and review a robust approach to managing pandemics. This implies having a well-defined process for decision making, authority delegation, and crisis management during a pandemic. 2. Strategic Planning: Institutions are expected to allocate adequate resources to monitor, plan, respond to, and recover from a pandemic. This might involve setting aside a budget for emergency expenses related to pandemics, training staff on pandemic response procedures, and developing contingency plans for critical services. 3. Phased Approach and Resource Allocation: Institutions should identify the stages of a pandemic and allocate resources depending on the phase of a pandemic. This might involve prioritizing certain services during different phases of a pandemic. 4. Identification: The guidance requires institutions to identify critical and non-essential services that may be affected by a pandemic. For instance, if the pandemic leads to lockdowns or reduced mobility, some banking services may become inaccessible or less effective. 5. Health & Safety: The institution should take measures to protect the health of its staff and customers. This might involve implementing strict hygiene protocols, providing personal protective equipment (PPE) to staff, and establishing quarantine zones within the premises. 6. Communication & Education: Institutions must ensure that they have effective communication channels both internally and externally. Internal communication should aim to keep staff informed about pandemic developments and response measures. External communication should ensure that customers are kept updated on any changes in banking services or accessibility. 7. Facilities Management: Institutions should take early action to ensure their facilities are adequately taken care of during the early stages of a pandemic. This might involve implementing cleaning schedules, setting up isolation areas, and ensuring that there are adequate supplies of essential items. 8. Pandemic Incident Management: The guidance requires institutions to have a well-defined process for managing pandemics. This could involve establishing a crisis management team, developing detailed incident management plans, and regularly updating these plans based on current pandemic conditions. An important aspect of the guidance is that it demands instant reporting during a pandemic. Therefore, banking institutions in Kenya are required to report any confirmed cases related to their activities. These reports must be submitted within specific timeframes (immediately for certain events, annually for others). Lastly, this interpretation should help you understand better how these guidelines can guide Kenyan banks in developing robust and responsive pandemic response plans that meet the expectations outlined in the provided Guidance Note.