Review and updating of SAMA regulatory requirements in other related areas. SAMA’s regulatory initiatives are aimed at protecting the interest of depositors and consumers of banks, besides ensuring the safety and soundness of banks. In conclusion, I would say that in the aftermath of the global financial crisis, the financial landscape has changed substantially and still continues to change at a rapid pace. In order to cope with the challenges ahead, the supervisors and central banks are required to have better management of systemic risks through coordination and cooperation in global standards and policies. We believe that Basel III when fully implemented will contribute significantly in managing the systemic risks and strengthening of global financial system. However, this will require substantial investment in systems and human resources as well as strengthening of governance and risk management frameworks. But this does not mean that we should excessively rely on advanced risk methodologies and models, and undermine the role of sound professional judgment and common sense. In practice, the use of quantitative risk models have proved much more effective when coupled with judgment and institutive thinking. We have been emphasizing upon our banks the value of strengthening risk management frameworks and methodologies along with requiring their boards to institute a strong corporate governance culture to manage the banks effectively. We at SAMA are also actively monitoring the new developments both globally and in domestic markets, and are fully geared to ensure stability of our financial system. I wish you a fruitful symposium! 4  BIS central bankers’ speeches

By end 2008, savings in the stabilization fund (FRR) , totaled DA 4113 billion ( equivalent to $ billion);  •  domestically financing the economy’s large investments, in the context of excess saving rates over investment rates;  •  developing the bond segment of the financial market, with access limited to domestic investors;  •  Advancing the restructuring of the banking sector following failure and bankruptcy of small private banks which resulted in withdrawing their licences over 2003-2006 while compensating depositors through the Deposits Guarantee Fund. The strengthened macroeconomic stability, as evidenced by subdued inflation (4.4 % in 2008 despite the surge in world commodity prices) and a real exchange rate of the Dinar near its equilibrium level, as well as important foreign exchange reserves $ billion, by end 2008) and low external debt, have constituted sound safeguards against the inherent shocks of the current international financial crisis. In addition, indirect monetary policy instruments (deposit auctions, marginal deposit facility, …) have been successfully used to limit the impact of structural excess liquidity on inflation. Although the direct contagion impact of the international financial crisis on the Algerian banking system is limited, in view of its small exposure to international financial markets, increased attention is directed to further strengthening and preserving its soundness. In this regard, the required minimum capital for banks and financial institutions have recently been substantially increased to strengthen their resilience and increase their lending capacity.