and transfer these into the bis central bankers ’ speeches different components of the programme. in other words, our existing agricultural financing and insurance scheme would be assessed, modified and integrated into nirsal. 25. all of our development initiatives at the cbn have been underpinned by a new engagement with the banking industry through the bankers ’ committee by adopting a more collaborative approach for financial services led national economic development and transformation. the bankers ’ committee has identified 3 key sectors : power, transportation and agriculture, as most critical to development of the real economy, as well as the change that will drive other sectors and contribute to economic development of nigeria. we work by identifying initiatives in each of the focus sectors that the financial system will support, determine requirements for success including funding and engage in advocacy to effect government policy changes. the bankers ’ committee also supports industry - wide capacitybuilding and work on the development of regulation and legislation to support lending to these three key sectors. 26. available data shows that the macroeconomic environment has improved considerably. inflation rate has moderated at a low double digit while the prime lending rate has gone down significantly. the exchange rate has been relatively stable. all these have impacted on the growth of the real economy. 27. from the recent experience it is discovered that the preponderance of toxic assets in bank portfolios have largely contributed to liquidity challenge facing some banks. however, the operation of amcon has started to strengthen the balance sheets of the deposit money banks. it is important that the banking system should learn to strictly to comply with the basel requirements in their operations in order to safeguard their stability. therefore, bank managers must be guided by professionalism and good corporate governance principles in their day to day activities so that our banks can remain safe, sound and competitive in the global market. 28. maintaining a safe and sound banking sector is essential, given the key role that banks play in facilitating economic growth and financing developmental projects, particularly key infrastructure, agriculture and industry. most emerging market economies have been known to use the domestic financial institutions to execute real sector big ticket projects and financial institutions in nigeria should not be an exception if we hope to achieve our developmental objectives. therefore, for our banks to be globally competitive, the current reforms in the banking will be sustained and strengthened. 29. finally, ladies and gentlemen, some schools of thought have questioned the rationale for any central bank to pursue the so called multiple objectives. let me emphasize the fact that in a developing economy such as ours

that we should move towards that direction. instead, what i believe should occur is a move towards greater accountability. thus, the bsp will sustain its reforms that would lead to improved disclosure practices, better risk management and higher standards of governance in the banking system. we will continue to pursue regulation that would make the markets work more efficiently and advance consumer protection. realizing that the current crisis has taken on a global nature, we will further strengthen engagements with our regional peers to share information, discuss emerging developments, and pool resources, if necessary even foreign exchange reserves. it ’ s interesting that the current financial turmoil took on a turn for the better once the major economies began to act in concert. confidence had been quickly eroding until then. the coordinated and cooperative policies that were put in place by the us and european central banks and finance ministries beginning october last year, have helped restore some traction in the markets and subsequently improved market confidence not only in the major economies, but also in emerging markets. ladies and gentlemen, 2009 will be a critical year for our economy. but we should look at this crisis as like the gift of fire of old. fire is important in all facets of our lives including the need for light, power and heat. yet fire is not without risks to life and property. what is important is to be able to master it and harness it to serve human needs. thus, this crisis should pose a challenge to us to put together and implement policies this year and beyond that would enhance the resilience and the flexibility of our economy. without a doubt, this crisis shall test our resiliency and character, and it shall determine whether our buffers would keep us afloat amidst troubled waters. the philippines is not a newbie in terms of facing crises, for we have hurdled quite a number of these in the past. each crisis we encountered was unique in its roots and causes. but we have learned from each, every time. it ’ s too early to make prescriptions and judgments, given that much is still to unfold. i trust that the audience could share my vision in seeing a glass half - filled with water as “ half - full ” rather than “ half - empty ”. let us also remain vigilant and prepared for any circumstances that could come our way. let me end my remarks this morning with a quote from john d. rockefeller. he said " these are days when many are discouraged. in the years of my life, depressions have