Although Zambia did not experience bank failures during the current global crisis, work on the establishment of the deposit protection scheme is currently in progress. Quick bank resolution is also an essential element that inspires confidence in the financial system. In Zambia, for instance, work on liquidations has been going on for some time in some cases. The establishment of an effective depositor protection scheme should assist in early bank resolutions while providing protection to the most vulnerable depositors. Chairperson, although the Bank of Zambia has exercised the function of lender of last resort (LOLR) in the past during the banking crisis in the 1990s, there was no clear LOLR policy framework in place. There has been renewed concern that the economic slowdown, if prolonged, could create liquidity pressures in the banking system in Zambia. Past  BIS Review 63/2010  3  experiences and current global slowdown build a strong case for a clearly designed LOLR framework in which the central bank can exercise this function. The challenge in the regulatory and supervisory arrangements is that of operationalising the lender of last resort. Lender of last resort should be seen in light of its role in promoting wider public good and systemic financial stability and ultimately, the wider economic stability. It plays an important role in the economy to avoid the social cost of a bank failure. Some bank failures may lead to contagion effect on other banks which has the potential to transmit to the entire economy.

ASEAN is now the sixth-largest economy in the world in terms of combined GDP; and is the fourth-largest exporting region after China, the U.S. and Germany. The ASEAN Economic Community is governed by the principles of mutual respect for countries’ independence, national identities, and levels of development. These principles have become a foundation for deeper economic and financial integration, creating a region that is more inclusive and sustainable. However, globalisation has presented us with significant challenges. Where it has created winners, many have been dislocated. Fruits of globalisation that were not equitably shared led to a sense of injustice within the global community and economy. Now, domestic inequality has increased, while existing wedges in wealth distribution, employment opportunities and social mobility have been amplified by globalisation. Public discourse on both the positives and negatives of globalisation is not new. What is new is the rising public backlash against globalisation, which has been used by some to promote their narrow economic and political agenda. Ironically, some of these originated from the very economies that advocated globalisation as a means to generate greater wealth. Some of these concerns are legitimate and deserve due attention by policymakers and researchers. The advocacy that globalisation should be made fairer warrants strong consideration. Maximising benefits and evenly distributing it is a worthwhile goal. Let’s challenge the conventional wisdom and consider unorthodox solutions. As these solutions will invariably have global dimensions, cooperation amongst countries is critical. This is where the IMF, as a global institution, can facilitate and play a meaningful role.