On capital adequacy, MAS is putting in place across the financial sector a risk-based framework based on common principles and objectives. The existing capital frameworks for insurance companies, securities dealers, and futures brokers, are being revised, so as to move towards a risk-based approach, not dissimilar to banking. In insurance, industry working groups are looking into the valuation and solvency framework for both life and general insurance business. In securities and futures, MAS has been working with the Singapore Exchange to establish a risk-based capital adequacy framework for licensed securities dealers and futures brokers. This framework will allow the brokers to better manage the risks they face, in the light of market and product developments. The new framework is expected to be introduced in the second half of 2001, and will take into account comments and findings from two rounds of consultation with the industry. In banking, where risk-based capital standards already exist, MAS welcomes the key thrusts of the proposed New Basel Capital Accord. It has been working closely with the local banks to develop their capabilities and resources, so as to implement the internal ratings based approach. Liberalising access Liberalisation efforts have kept pace. A more open and competitive environment will spur innovation and enterprise in the financial centre as well as provide Singaporeans with quality financial services. The insurance industry is completely open. The securities industry has been substantially liberalised and will be completely open from January 2002, when remaining trading restrictions on new members admitted to the Singapore Exchange will be removed.

All the users of this information should be aware that this information does not substitute or duplicate the official macroeconomic statistics. These qualitative indicators are compiled on the basis of opinions and expectations of the interviewed economic agents. I would like to be more concrete relate to this point. The Bank of Albania, having the awareness, independence and a certain degree of institutional transparency, and aiming at achieving high professionalism, plays an active and proactive role in the country’s economic development. Economic analysis is under direct function of the monetary policy decision-making process. In essence, the decision-making precedes the medium-term developments, sustaining the maintaining of price stability as the primary policy target drafted and implemented by the Bank of Albania. Profound analysis of the past, present and future developments of the economy contribute to appropriate decision-making. I assure you that building a complete “picture” of the present and the future of an economy is a rather difficult process, not only for an emerging economy, such as that of Albania, but also for the most advanced economies of the world. Economic and financial developments are accompanied by elements of insecurity, which have become, as you already know, dominant in last two years. Making decisions on the future of this already globalised world of economic links, requires professional maturity. Assessing and selecting appropriate and reliable statistical information requires profound intuitive abilities. Making the selected data bank beneficial to the decisionmaking, requires analytical foresight.