clico debacle, the eccu has neither a regional regulator for insurers nor a uniform insurance law. needless to say, we definitely have unfinished business. if we were to reflect on the past 10 years, we would readily recognise the interconnectedness of our financial sector, we would also recognise the vulnerabilities in our system and we ought to recognise that we are not quite prepared should a similar situation arise. evidently, we do have some urgent unfinished business. 2. the work on which we are engaged is truly bigger than all of us. i salute and pay tribute to you for the work you have done and are doing, in the area of financial system supervision, this is an important work, but i think you know as well as i do, that this work is not about us but our region and the people we serve – their protection and enhanced quality of life. for example, the work that the eccb is currently undertaking on deposit insurance is intended to add an important safety net in our banking system. i am on record, from day one, stating that my desire to see our work on deposit insurance extend to credit unions. of course, for that to become a reality, the sector would have to meet certain regulatory expectations and requirements. ultimately, the important work that we are doing and must do, is about our sustained growth and shared prosperity. may that firm understanding compel us and propel us to create a legacy that will endure well beyond our time of service. page 2 of 3 eastern caribbean central bank 3. regional cooperation is the only viable and effective way forward. as i sat in basel and listened to the various heads speak about their work, i was struck by the level of cooperation within the international community. many of the participants are from large countries with well - developed and sophisticated financial systems, and yet, they understand that individual country action is not enough. they understand that there is an imperative to come together and take collective action to minimise contagion risk in an international financial system that is highly interconnected and yet increasingly diversified. and so, it seems to me colleagues, that within the eccu, we have a duty, an obligation and i hope, a sense of urgency, to pursue regional cooperation on financial sector regulation. i have said from the outset that i do not feel that the development of a regional regulator would disenfranchise country national regulators because i see it filling critical gaps and securing critical mass for the demanding

saving rate as a share of current income and funds flow, some argue that a more relevant measure of saving adequacy is not the portion of current income set aside for saving but rather the change in net worth. and in this regard, the picture of household saving looks more favorable than suggested by the saving rate. the ratio of net worth - to - disposable income has come down from its peak in 2000, but remains at a high level relative to the past few decades, because capital appreciation on household assets, such as equities and real estate, has considerably outpaced income gains. this is a passive perspective on savings, though, where households rely on the markets to raise the value of their assets over time. but, to create these assets, households need to consistently set aside some of their current earnings to invest for their future needs. while the experience of the past few years of exceptionally low interest rates and lower expected stock returns encouraged a rational consumer to spend and not save, as the markets return to more long - term trends, we should see consumers moderate their behavior as well. office of federal housing enterprise oversight house price index. managing personal finances i now want to turn from an aggregate view of household finances to savings and credit at the individual level. in particular, i want to discuss issues relating to managing personal finances, including managing personal credit and saving for retirement, and the special importance of financial education. college graduates preparing to enter the labor force will soon assume a new level of responsibility for managing their finances. personal financial management includes the strategic use of both credit and savings to enhance asset accumulation and financial well being. just as the choices that students have made regarding their education play a vital role in determining career opportunities, the decisions they make and behaviors they establish regarding financial management in the coming years will also impact future opportunities and their ability to capitalize on them. compared to a generation ago, the financial marketplace of today is significantly more complex. there is now an extensive range of consumer financial products and services, and providers of these goods and services. advances in communications technologies and other technological tools have dramatically broadened the provision of financial services. for example, the development of sophisticated credit - scoring models permits lenders to more efficiently evaluate credit risk and underwrite loans and thus provide a broader array of loans to more closely meet the specific financial needs of different consumers. in addition, as workers have become more mobile and more likely to change jobs several times over the course of their