These highlights reflect, inter alia, the macroeconomic policies pursued over the course of this period. Monetary and fiscal policies have, in a concerted manner, aimed at fuelling aggregate demand and economic growth, ensuring at the same time the preservation of macroeconomic balances. July’s state budget revision put emphasis on the measures required to be taken in view of maintaining medium and long-term fiscal sustainability, hence implying lower budget deficit and lesser impact of fiscal stimulus on aggregate demand in the short run. This revision paved the way for pursuing an easier monetary policy. The key interest rate lowered by 0.25 p.p., hence yielding the most stimulating monetary conditions during the last decade. Nevertheless, complex challenges remain for the Albanian economy and the economic agents. Economic growth rate, albeit positive, seems insufficient to yield improvements in the labour market and to lower unemployment. In addition, the sustainability of economic growth remains frail in the short run. Its reliance on foreign demand and export growth may be insufficient against a background of a non-consolidated global economic outlook. The waning of fiscal stimulus also requires greater contribution of the private sector to economic growth, hence bringing consumer and business behaviour to the forefront and accentuating the role of bank credit to their financing. Setting proper equilibrium between  BIS Review 170/2010  1  short-term stimulus and long-term stability requires courage and diligence from the policy-makers. Ongoing structural reforms remain a priority in the long run.

In particular, the Central Bank’s review process focuses on adherence to Risk Management Guidelines and the Anti-Money Laundering Regulations as well as Prudential Guidelines that detail minimum, “Know Your Customer” requirements that financial institutions should adhere to. The overarching objective of all this is to ensure that our financial system is safe sound and stable. In a nutshell, there is an existing supervisory framework to ensure the safety of mobile banking solutions. This framework will continue to be reviewed in line with the changes in the mobile banking space. As you may be aware, some of these innovations may require collaboration with the regulators in the telecommunication sector. As such it is our intention to work closely with the Zambia Information and Communication Technology Authority in promoting safe and sound mobile banking services. Mr Chairman, it is also worth noting that since the last Mobile Banking Conference in 2009, a number of positive developments have occurred in the telecommunication sector. For instance the partial privatization of the Zambia Telecommunications Company (ZAMTEL) will result in intensified competition in the sector. This will no doubt lead to better quality service for the consumer. Further, following the liberalization of the International Gateway, we have already seen mobile service companies reducing their rates significantly. This, coupled with the now affordable cell phone handsets, will enhance access to mobile phone services and an opportunity for many of our people to be financially served.