sin will always be with us, several developing countries, including mexico and malaysia, have recently been able to borrow from international investors in their own currencies, and there is good reason to believe that this trend will continue. another reason to develop local currency bond markets is that it is desirable that local firms that need to borrow have the option of doing so in their own currency. in this regard, the ebrd's initiative to gain access to local currency funding for onlending to the private sector, rather than requiring that private sector borrowers take foreign currency loans, should be strongly commended and encouraged. given the greater sophistication and financial strength of the international financial institutions, they are in a much better position to in essence provide hedges against the risks of foreign currency financing than are local institutions. the ebrd has been able to gain such access in some countries, and it deserves our encouragement as it seeks to broaden this initiative. 3. graduation despite many setbacks, and an unexpectedly difficult beginning, the transition process has on the whole been successful - more so in some countries and less so in others in which the ebrd operates. this year, eight of the countries of operation of the ebrd are already full - fledged eu member states, and other countries of operation are preparing to achieve this status in the next few years. the bank has started a process of shifting resources away from the new european union member states to countries in south eastern europe and the cis. looking forward, further discussions of the process of graduation from ebrd financing will take place later this year, within the context of the next capital resources review. this exercise should be oriented towards formulating the bank's strategy on graduation through the year 2010. i believe that the ebrd should continue to shift its operations away from the more developed countries that are already in the eu, and should strengthen its focus on operating in the less advanced countries of operation, where the challenge of transition is greater, and where the available capital and knowledge resources are more limited. it would be useful to set guidelines for the dates by which the bank would phase out and cease operating in certain countries - but these guidelines should leave room for some flexibility, particularly in fields of operation in which the ebrd has special technical expertise. * * * in conclusion, let me say that the remarkable success of the ebrd in fostering transition in the region deserves the appreciation of all its shareholders. i wish the

rasheed mohammed al maraj : leveraging technology through turbulent times address by his excellency rasheed mohammed al maraj, governor of the central bank of bahrain, at the meftec 2009, manama, 10 february 2009. * * * good morning ladies and gentlemen : i am pleased to welcome you to bahrain for the 2009 middle east financial technology exhibition and conference, or meftec as it is popularly called. this morning, as i look around, i am happy to see that this event continues to arouse so much interest. each year the number of participants continues to grow, a clear testament to the success of this exhibition and conference. i would like to thank the organisers for their efforts in enhancing and improving each event, and the delegates for their participation. i wish you a pleasant stay here. information technology is, of course, at the heart of the modern financial services industry. banks have used advances in information technology to improve their service to clients and to improve the ways in which they manage their risks. the delivery of financial services has been fundamentally transformed by technological innovations such as mobile phone banking, internet banking and the ability to trade stocks and bonds from a home computer. for many millions of people around the world these technological innovations have improved the speed, availability, and cost of financial services. technological advances have also contributed to financial innovation. had it not been for technological innovation, and particularly increases in computing power, the kinds of products which enable a business to manage its interest rate, foreign exchange rate, and funding risks could never have been developed. these products are now so commonplace that we tend to take them for granted. we forget just how important they have become to well - managed businesses. the theme of this year ’ s conference is “ leveraging technology through turbulent times. ” these are, without a doubt, turbulent times. the world is confronting its most serious financial crisis in several generations. the current global financial crisis has certainly been a reminder that not all financial innovation is a good thing. some of the new financial instruments that have been created in the past decade have imposed large costs, not just on those who own them, but also on the wider society. it is clear that we, the regulators, will need to become much more cautious about financial innovation than we tended to be in the years before the crisis. at the same time, however, we should remember the benefits that innovation has also managed to deliver. so, looking to the future, we can be