. this has been the right thing to do. one might ask why lenders themselves did not do more to constrain their activities in these areas, given the earlier trends were adding to risk in the overall system. when everything is going well, it appears that any single institution has difficulty pulling back. each worries about their competitive position and about the market reaction. individual institutions are also more likely to focus on their own risks, rather than the risks to the system as a whole. this means that supervisory measures can be useful in helping the whole system pull back. ideally, such measures would not be needed, with instead the appropriate level of restraint coming out of lenders ’ holistic risk assessments. but when this does not occur, supervisory measures can play a constructive role. most lenders are now operating comfortably within the new restrictions and these measures are not unduly restraining the supply of overall housing credit. one of the factors that has a bearing on current discussions of household debt is the slow growth in household incomes. over the past four years, nominal average hourly earnings have grown at the slowest rate in many decades. this means that borrowers haven ’ t been able to rely on rising incomes to reduce the real value of the debt repayments in the way they used to ; debtservice ratios will stay higher for longer. this is something that both lenders and borrowers need to take into account. the slow growth in wages is a common experience across most advanced economies today. it lies behind the sense of dissatisfaction that is being felt in many communities. the reasons for this slow growth in wages are complex. part of the explanation is a perception of greater competition from both globalisation and technology. an increased sense of uncertainty among workers is also likely to be playing a role, as is a change in the bargaining environment. the slow growth in wages is contributing to low inflation outcomes globally. my expectation is that this is going to continue for a while yet, given that the structural factors at work are likely to persist. but i am optimistic enough that i don ’ t see it as a permanent state of affairs. it is likely that, as our economy strengthens and the demand for labour picks up, growth in wages will pick up too. the laws of supply and demand still work. even at the moment, we see some evidence through our liaison program that in those pockets where the demand for labour is strong, wages are increasing a bit more quickly than they have for some time. the

muhammad al - jasser : “ assessment ” project of small and medium size enterprises opening speech by his excellency dr muhammad al - jasser, governor of the saudi arabian monetary agency ( sama ), at the inauguration ceremony of the “ assessment ” project of small and medium size enterprises, saudi company for credit information ( simah ), riyadh, 8 october 2011. * * * your excellencies and dear audience, i am pleased to participate with you in celebrating the launching of the “ assessment ” project of small and medium enterprises. first, i would like to express my thanks and appreciation to the colleagues at the saudi company for credit information ( simah ) for the development of this important project, which i hope will be provided with all necessary means of support by all entities concerned for its success. dear brothers and sisters, the national economy consists of a large and integral variety of public and private institutions that use available human and material resources to produce continuous flows of goods and services to meet the domestic community ’ s needs and a part of the external demand. of course, domestic enterprises differ in size based on various criteria, the most important of which are : the number of workers, the amount of capital, sales and others. one of the misconceptions is that large enterprises are the main impetus of economic activity. this belief has arisen from the good news repeatedly published about those institutions in various mass media. however, the actual reality emphasizes that small and medium size enterprises play an important role in the economic activity in both the developed and developing countries, through their absorptive capacity in employing the workforce of the different levels of training and education. a study by the riyadh economic forum on “ the saudi business sector and meeting the economic challenges ” showed that the average number of workers in the saudi private sector stood at 8. 4 workers per one single institution, and, consequently, 90 percent of the institutions in the kingdom is considered within the scope of small and medium size enterprises. small and medium size enterprises are considered the best efficient and effective tool for accelerating economic and social development, especially in remote areas with the least opportunities for development. they also provide a fertile field for training workers and developing their skills. to this end, governments have paid great attention to such enterprises and established the basic regulatory framework needed for their growth and development, particularly after having proved their ability to reduce pressure on the government sector in providing job opportunities and training. governments also helped big enterprises in the marketing