and more robust provisioning practices. last week, the basel committee issued recommendations aimed at strengthening cross - border bank resolution frameworks. taken together, the recent and planned initiatives of the basel committee in response to the crisis, once implemented should promote a more robust banking sector and limit the risk that weaknesses in banks amplify shocks between the financial and real sectors. the basel committee ’ s work is consistent with and supported by the initiatives of the financial stability board and the g20, which will meet tomorrow and the day after tomorrow in pittsburgh. core principles another distinct response to the crisis is the core principles for effective deposit insurance systems, developed by the basel committee and iadi. the basic idea behind the core principles is that they are universally applicable. on the one hand, “ they are reflective of, and designed to be adaptable to a broad range of country circumstances, settings and structures ”, as the executive summary notes. on the other hand, they “ are not designed to cover all the needs and circumstances of every banking system ”, which would be very difficult indeed. “ the principles are intended to be a voluntary framework for effective deposit insurance practices. ” national authorities can adjust them and “ put in place supplementary measures that they deem necessary to achieve effective deposit insurance in their jurisdictions ”. taking a closer look at the principles themselves, they are intended as a basic reference for public authorities internationally. national authorities can use these principles, either as a benchmark against which they can assess their own deposit insurance schemes or as a tool to implement or reform their deposit insurance systems. a comprehensive self - assessment should identify strengths and weaknesses in the existing deposit insurance system and form a basis for remedial measures, where needed. the principles will also be used by the imf and the world bank in the context of financial sector assessment programs to assess the quality of deposit insurance. in order to facilitate such assessments, iadi with the support of the basel committee is currently developing a core principles methodology. as part of these assessments, specific country circumstances can be more appropriately considered, in close dialogue with national authorities. any assessment should aid the deposit insurer and policymakers in improving the deposit insurance system, as necessary. in short, the basel committee believes that the use and implementation of the core principles will provide a starting point for more advanced deposit insurance systems and contribute to enhancing financial stability. we have set off on this journey with this conference! future challenges the more difficult question is how deposit insurance systems will develop.

crisis has negatively affected the zambian economy in many respects and presents serious challenges to maintaining the health of the economy, macroeconomic stability has been maintained. the bank of zambia has continued to monitor the global developments and take appropriate measures to maintain confidence in the banking system and avoid systemic risk. it is important to note that despite the crisis, there still remains investment confidence in the zambian economy and one example of this is the number of new commercial banks that have commenced operations in zambia in the last 12 months. the bank of zambia is also committed to ensuring the availability of finance to viable businesses including qualified health businesses. doing so will help create a foundation for greater investment in the health of the nation. we appreciate the partnership and initiatives such as the “ banking on health ” in extending health services in zambia and look forward to greater investment in the health sector of zambia. i thank you.