Regional and international bodies should play an active part to resolve some of the cross-border money transfer issues. International money transfer services should offer enhanced services at reduced costs. International message services, such as SWIFT, should facilitate the remittance flows through innovative products and technology link-ups between central banks and other stakeholders involved in remittance transfers. Micro level initiatives In addition to the macro level global principles, at micro level, the formal financial institutions should make all efforts to enhance accessibility to remitters and receivers. It is also necessary to recognize the remittance collectors, such as Hawala and Undial and for formal financial institutions to establish agency links with them. The moneychanger system should be streamlined, monitored and geared to attract remittances. In speeding-up delivery at low cost, the postal network should be strengthened. Both the postal network and the formal banking institutions should deliver remittances at doorstep. The banks and financial institutions in the home country should provide a package of facilities to migrant workers, prior to their departure. Opening of bank accounts, granting of housing loans are key to attract remittances to the formal channels. Banks and other formal financial institutions should display their charges and commissions on remittance services and be more transparent in their dealings with remittances. These are some of the steps that should be taken by remittance recipient countries, including Sri Lanka, in enhancing remittance inflows while making the remittance industry a sound and safer one. Thank you. 6  BIS Review 3/2007

Putting all of the responsibility on monetary policy would probably mean such high interest rates that they would have seriously negative repercussions for the real economy. Moreover, the argument remains that it is difficult to determine when a credit boom changes from being beneficial for growth to becoming a risk that can trigger a financial crisis. I nevertheless think that the crisis has taught us that when we conduct monetary policy we must also follow a number of variables that are linked to the build-up of risk in the financial markets, primarily credit growth in different sectors of the economy. The fact that monetary policy alone cannot prevent financial crises does not mean that we can only look at an inflation target and otherwise disregard what a long period of low interest rates may entail with regard to risks in the financial system. This is also the view the Riksbank has expressed  BIS Review 149/2008  5  in recent years, occasionally, one must say under strong criticism from both academics and various other parties in society. Monetary policy can alleviate the consequences of the financial crisis The financial crisis has meant that the focus normally placed on monetary policy has been transferred to the measures taken to safeguard financial stability. Monetary policy cannot be used to resolve acute problems in the financial markets. This requires a different type of measure, as I have already described. What role can monetary policy then play in the current situation?