I am therefore delighted that the Institute of Directors has chosen this topic for discussion today. Perhaps it would be useful to begin by defining what corporate governance means. There is no single, accepted definition of what “corporate governance” means. The majority of the definitions employed by corporate practitioners relate corporate governance to “control” of the company. In this regard, corporate governance is defined as a set of processes, customs, policies, laws and institutions affecting the way a corporation is directed, administered or controlled. Corporate governance influences how the objectives of the company are set and achieved, how risk is monitored and assessed and how performance is optimised. Ladies and Gentlemen, corporate governance is of key importance to any financial system. In Zambia the financial sector is dominated by banks and these remain the main source of finance in the economy. The failure of corporate governance in banks may therefore pose serious consequences for the banking sector and the economy as a whole. It is also important to note that the health of the financial system largely depends on their capacity to identify measure, monitor and control their risks. Banks face a wide range of complex risks in their day to day operations, including risks relating to credit, liquidity, exposure concentration, market risks, settlement, and internal operations. The nature of banks’ business particularly the maturity mismatch between their assets and liabilities, their relatively high gearing and their reliance on creditor confidence creates particular vulnerabilities.

In parallel, reintermediation by non-banks raises level-playing field questions linked with uneven regulation and supervision across sectors and countries. To discuss these important issues, we are extremely fortunate to gather an exceptional panel today, with: •  Mrs Sheila Bair, Chair of the Systemic Risk Council, former chair of the Federal Deposit Insurance Corporation (FDIC), who is obviously a prominent regulator. Dear Sheila, your work to build a more robust financial system, that serves the economy, is particularly impressive and your views on how to make it even more resilient are very sharp;  •  We also have Mrs Barbara Novick, Vice-chair of Blackrock and the author of impactful articles on asset management and public policy; as well as Mr Alain Papiasse, Deputy Chief Operating Officer (COO) at BNP Paribas, representing the group in North America. Barbara and Alain are two top market practitioners with a comprehensive experience in both asset management and investment banking. So, dear Barbara, dear Alain, I hope you will provide us with “insider” and complementary visions of what it really means to finance the economy. •  And finally let me introduce Mr Thomas Philippon, a distinguished academic from NYU, notably specialized in the evolution of the financial industry. Dear Thomas, your research on the financialization of the economy will provide a unique viewpoint by putting in perspective the links that exist between the financial industry and the economy. Thank you all for being with us today. Let me now give the floor to our panelists.