It is difficult to say exactly what an appropriate policy mix should look like, as we are on relatively uncharted ground here. There will be a lot of “learning by doing”. New research will contribute to the learning, but bearing in mind the risks, we will also have to increase the pace at which the reforms are implemented. There will not be so much learning if we do not add a little more doing. The measures needed will probably have tangibly negative effects on private consumption and growth in the short term, but are necessary to reduce the risks of an even worse outcome further ahead. References Aikman, David, Haldane, Andrew G. and Nelson, Benjamin (2011), Curbing the Credit Cycle. Paper presented at the Columbia University Center on Capitalism and Society Annual Conference “Microfoundations for Macroeconomics”, New York. Altunbas, Y., L. Gambacorta and D. Marques-Ibanez (2014), Does Monetary Policy Affect Bank Risk? International Journal of Central Banking, March 2014. Bayoumi, Tamin, Giovanni Dell’Ariccia, Karl Habermeier, Tommaso Mancini-Griffoli, Fabián Valencia and an IMF Staff Team (2014), Monetary Policy in the New Normal, IMF Staff Discussion Note 14/3, International Monetary Fund. Bryant, Ralph C., Dale W. Henderson and Torbjörn Becker (2012), Maintaining Financial Stability in an Open Economy. SNS Förlag. Borio, Claudio (2012), The Financial Cycle and Macroeconomics: What Have We Learnt? BIS Working Papers No. 395. Carney, Mark (2013), Monetary Policy After the Fall. Speech at the University of Alberta 1 May 2013. Bank of Canada. Caruana, Jaime (2012), Policy Making in an Interconnected World.

Therefore wooing investment into this institution should not be difficult task. Such investment will go a long way in enhancing the quality of graduates this Institution will produce. BIS Review 23/2009  1  Mr President, it is during times of crisis such as the one we are undergoing that graduates should assist the industry in coming up with well researched constructive proposals and solutions on how challenges may be addressed within the context of our local environment. The prevailing global financial meltdown is in fact an opportunity for the institute to critically review its core operations and determine if its flagship education and training programmes as well as other learning environment initiatives such as research, consultancy, counselling and continuous professional development activities are robust enough to adequately serve our financial services sector, both in times of buoyancy and during periods of turbulence. Ladies and Gentlemen, I am reliably informed that the Institute is negotiating strategic alliances that will ensure high quality international standard flagship education and training programmes for professionals in Zambia’s financial services industry. I am equally pleased to note that that the Institute has direct representatio n on two working groups of the Financial Sector Development Plan (FSDP) – the Banking Working Group and the Human Resource Working Group. I have no doubt the FSDP stands to benefit from more representation from the Institute. I urge you Mr President and Council Members, to engage all the stakeholders in the financial sector including, Non-Bank Financial Institutions, Insurance Companies, Stock brokers and Pension Funds.