we call the system wide exploratory scenario, which seeks to synthesise the effects of some severe but plausible shocks passing through the financial system. over 50 firms have participated, as have the clearing houses that support the activity. this is not a stress test in the now quite traditional individual bank by bank sense. it is a market - wide test designed to simulate shocks – it's a flow test, designed to find obstructions and concentrations of risks and correlated positions that might otherwise be opaque. it is i think an important step forward in testing behavioural reactions to stress including how risks might cascade across markets. and, it will give us a better answer in terms of the effectiveness of ccps in managing market - wide risks. the results should be published by the end of the year. it's the sort of new thing that i think mike would have appreciated, and been enthusiastic about. the bank of england and the cftc have a longstanding relationship of cooperation on ccps. mike added his special qualities to that relationship. its our duty to carry his work forward, but even more so to do it in his spirit, the one we enjoyed and miss so much. thank you. i would like to thank sarah breeden, karen jude, harsh mehta, ruth smith, sam woods, shane scott, sasha mills, deborah potts, thomas ferry, konstantina drakouli, 4 / 5 bis - central bankers'speeches marc ledroux, barry king and priya mistry for their help in the preparation of these remarks. 5 / 5 bis - central bankers'speeches

and the banks should be subject to the same prudential regime. in furtherance of this, the bank of mauritius decided to extend several guidelines to this segment and we are soon bringing it under a risk weighted capital adequacy measurement system. there is another important aspect that i need to highlight here. the legislation envisages that we encourage merger of deposit taking institutions among themselves or with banks or even their conversion as banks. the contribution of financial intermediation in the gdp of mauritius has been growing steadily and has gone up from 10. 3 per cent in 2005 to 10. 5 per cent in 2007. it is forecast to be about 10. 8 per cent in 2008. while the specific contribution of leasing is not captured in the data, it is important that leasing also plays a significant role. what is heartening though is that the outstanding lease assets have been growing at a rate of 10 per cent or more over the last five years. if we look at the leasing business of the non - bank deposit taking sector we see that outstanding leases have gone up from rs10. 1 billion in december 2006 to rs11. 5 billion in december 2007 and further to rs12. 6 billion at the end of 2008. while the leasing sector has been growing steadily, there is need for leapfrogging if the sector has to catch up with other segments within the financial intermediation industry. the share of deposits of leasing companies in total deposits declined from 6. 5 per cent in december 2007 to 6. 2 per cent in december 2008. an ifc study identifies financial management skills, access to diversified sources of local currency financing, good governance and performance management framework besides development of a sustainable competitive niche as critical for the growth of the leasing sector. in this context, i would highlight the proper assessment of credit risk and post disbursement management as very critical. delinquencies in the leasing segment are comparatively higher than in the banking sector. now that non - bank deposit taking institutions have access to the mauritius credit information bureau ( mcib ) data base we hope to see tangible improvement in this area. if leasing has to grow fast, it must be cost advantageous too and a lower rate of delinquencies will help operators to keep their margin with a lower spread. before concluding, let me say that i am sure the deliberations of this conference would help identify what needs to be done in the times ahead for the leasing industry to be able to play its role