may also be needed in the other sectors of financial institutions, for example in insurance. the ecb has drawn attention since the early stages of the basel ii process and the implementation of the framework in the eu to macro - prudential implications and to the possibility of increased procyclicality of certain provisions. when bank capital is largely based on risk and risk increases in a recession, macroeconomic consequences might arise through a procyclical reduced ability of banks to lend. these concerns have been appropriately addressed in the revised proposals submitted for consultation by the basel committee and the european commission. pro - cyclicality concerns are substantially mitigated and a good balance can be found between risk - sensitivity and macroeconomic stability. of course, attention will have to be paid to these aspects in terms of the implementation of the new framework as well. c. 3 responses to further integration let me talk next about the challenges caused by the third development, progressing financial integration. i will first discuss some of the relevant european issues and then turn to global issues. eu / euro area issues in the eu there is first of all the challenge of increasing the efficiency of the complex regulatory process to meet the pace of innovation sustained by the markets and to increase regulatory convergence across countries in order to support integration and reduce the burden on financial institutions operating in several countries. the so - called lamfalussy procedure - where some experience has already been gained in securities supervision - will seek to do precisely this, and will also improve the state of affairs in banking and insurance supervision. the deepening market integration experienced in the eu has given rise to the need for enhanced supervisory cooperation and common financial stability surveillance. as regards pure, micro - level supervisory cooperation, cooperation is being gradually stepped up through the “ lamfalussy procedure ” and the establishment of the so - called level three committees, where supervisors exchange views - the primary aim being to achieve a consistent implementation of the existing legal framework. we need adequate cooperation between central banks and supervisory authorities as well as a safeguard in relation to crisis prevention. the escb banking supervision committee has long been working as the interface between the eu central banks and banking supervisory authorities. it combines the macro - level perspective of central banks, which are best placed to monitor ongoing developments in the financial system, with the equally important micro - level approach of the supervisory authorities to provide a joint and comprehensive assessment of the stability of the eu banking sector. let me also note the importance of having appropriate arrangements at eu level

by world renowned rating agencies standards and poor and fitch, as well as, the reclassification of zambia as a middle income country by the world bank. the rating and reclassification requires the central bank, the zambian business community and government to continue enhancing the financial system to ensure that it is robust and reaches the unbanked. ladies and gentlemen, the product that is being launched today, demonstrates the way businesses are evolving to bring forth financial solutions that benefit customers. this service provides an important avenue for harnessing resources for financing development in our bis central bankers ’ speeches communities as airtel will partner with various stakeholders in different sectors of the economy. this will further enhance the development of the telecoms sector and its contribution to our economy. therefore, i wish to commend airtel for introducing this product which is expected to contribute towards bridging the gap in financial service provision by catering for customers in remote areas who have no access to banking services. the product is expected to extend the financial inclusion agenda in that it will be far reaching thereby impacting positively on the zambian public. i am also informed that the product is expected to reduce the use of cash in the economy. as you may be aware, the bank of zambia has been working towards reducing the use of cash in the economy by encouraging the use of alternative electronic means of payment such as the product being launched today. it is initiatives and innovations like airtel money that will make it possible for the general public to have alternative methods of transacting other than cash and other transnational payment instruments. to this end, i wish to mention that the bank of zambia with other stakeholders is in the process of putting in place a national switch that will further enhance initiatives such as this one whose launch we are witnessing today. ladies and gentlemen, the bank of zambia will continue to support any efforts and innovations by the private sector that extend the provision of financial services to the majority of our citizens. i look forward to seeing the product being launched today live up to the expectations of providing a safe, efficient, secure and reliable service to the zambian people. i hope that all customers will enjoy using the airtel money service. with these few remarks, i wish to declare airtel money officially launched and wish it all the success. thank you. bis central bankers ’ speeches