and are required to include indicators for performance evaluation. rbi has held meetings with the chairmen of banks to review the fips prepared by them. these meetings, chaired by deputy governor dr. chakrabarty, have enabled a clearer understanding of issues in financial inclusion. the discussions revealed that the main challenge is to ensure that the no - frill accounts actually become operational. because of dire poverty, the account or the branch services are rarely or minimally used. banks agreed that, for the fips to succeed : scalable technology solutions should be in place ; the rrbs should also be core - banking enabled ; business correspondent model coupled with biometric technology needs to be deployed ; performance criteria of staff should include achievement of financial inclusion targets ; and connectivity issues need to be sorted out by service providers. role of technology 19. let me now revert to the role and importance of technology for financial inclusion. financial inclusion efforts to date have been driven through two distinct channels : smart cards and mobile phones. one issue that often comes for debate in this regard is the need to ensure interoperability of technological solutions. i am told that efforts are afoot to achieve this. it is, however, important not to miss the wood for the trees. the priority clearly has to be to facilitate “ inclusion ” first. “ interoperability ” is no doubt important but it can follow. clearly inclusion cannot wait for interoperability to happen. 20. the second issue relates to the choice of a model for mobile banking. world over, there are two distinct models – the “ bank - led ” model and the “ mobile operator - led ” model. the reserve bank has a clear preference for the bank - led model. this is so for at least two important reasons. first, we want our financial inclusion to be more than just a remittance facility ; we want our customers to get minimum services like deposit insurance, access to affordable credit and the payment system which only banks can offer. second, given the growing concerns about money laundering and financing of terrorism, a bank led model is decidedly safer and more sustainable. we do recognize that mobile telephony has an important role in the value chain and we are keen that mobile service providers collaborate with banks to provide value added services. technology in banking – the way forward 21. let me now look ahead and flag a few important issues in the use of technology in banking and how it can be an aid to value creation. 22. the deepening of

development over the years. i want to take this opportunity to thank them all for their contributions in reforming the bank and upholding the dignity and effectiveness of our noble institution. your excellency, distinguished guests, the recent global economic and financial crisis was a wake - up call to the realisation that low and stable inflation, a sound banking system, as well as high and sustainable economic growth, though necessary, are not sufficient conditions for financial stability. as you are aware, the bank had developed the financial sector development plan ( fsdp ) which was approved by cabinet in 2009, to address the shortcomings in the financial sector. it is expected that funding for the fsdp would be provided under a basket fund arrangement with development partners, including kfw, gtz, and afdb, with the world bank assuming a leading role. the bank is in the process of setting up a secretariat for successful implementation of the fsdp for which the head has been appointed. your excellency, distinguished ladies and gentlemen, permit me to proceed with the discussion on the highlights of the reform policies to reposition the bank and the current state of their implementation. strengthening the supervisory role of the bank of sierra leone your excellency, distinguished guests, even though the bank was granted legal sanction by the bank of sierra leone act 2000, its powers and operational autonomy are limited. in order to strengthen its powers in the conduct of monetary policy, its supervisory role and to ensure financial stability especially with the multiplicity of banks, the bank of sierra leone act is being reviewed with technical assistance from the imf. the banking act 2000 is also being reviewed to protect the interests of depositors and shareholders and to further strengthen the bank ’ s supervisory and enforcement powers. the bank of sierra leone has broadened its regulatory and supervisory frameworks to include a number of “ other financial institutions ” in accordance with the provisions of the other financial services act 2001, which is also being amended to ensure compliance with international regulatory standards. the bank has issued revised prudential guidelines governing the operations of commercial banks. these guidelines have clearly specified requirements to address issues relating to capital adequacy, asset quality, liquidity, corporate governance, market risks, etc, which will be strictly enforced. the bank has also adopted the international financial reporting bis central bankers ’ speeches standards ( ifrs ) as its financial reporting framework and has requested the commercial banks to do likewise. furthermore, the bank of sierra leone has