##ity standards, and the usefulness of creating capital cushions to help moderate credit cycles. specifically with regard to the aim of dampening the tendency of markets to amplify economic cycles, headway is being made in the design of provisioning systems which, in essence, are similar to those in place in spain since mid - 2000 ( the dynamic or countercyclical provision ). international accounting regulators, particularly the iasb, also seem to be converging towards these systems. also with the aim of mitigating excessively procyclical behaviour of financial markets, management compensation guidelines have been drawn up to discourage excessively risky strategies. also in the pipeline are major regulatory changes to mitigate the moral hazard problems posed by institutions which in various ways ultimately acquire what has come to be known as systemic significance. naturally, this regulatory adjustment will have a significant impact on financial institutions. that means that, irrespective of how long a transition period is deemed appropriate, financial intermediaries should now set in motion the adjustment process, to ensure the least possible upheaval. spain ’ s financial institutions have understood this and are notably strengthening both the level and quality of their capital. the restructuring process of the spanish banking system runs alongside the reform of the global financial system. as part of this essential restructuring, all institutions, according to their individual characteristics and circumstances, must strengthen their solvency, resizing and improving their efficiency in the medium term. in short, the challenge consists in adapting to the new reality in which the financial sector will have to operate in the future. the spanish banking system is generally in a sound position from which to approach this restructuring process. but the present situation is complicated. on the one hand, the need for loan loss provisions will continue to dent profit and loss accounts, as defaults persist against a continuing weak economic backdrop. and on the other, the competition to secure retail funding pushes up the cost of borrowing and drives down margins. strains in the wholesale funding markets add further pressure. they also entail higher risk premia and, if they persist and intensify, could make access to the wholesale markets more difficult. moreover, the sector must absorb the internal imbalances that built up in the years of strong growth in the economy and in banking activity. these imbalances, which are greater in some spanish deposit institutions than in others, are essentially threefold. the first imbalance derives from their over - reliance on wholesale market funding. although the

michael gondwe : facilitating trade and building economies on the african continent opening remarks by dr michael gondwe, governor of the bank of zambia, at the african trade insurance agency workshop for bankers, lusaka, 10 september 2013. * * * the secretary general of comesa, h. e sindiso ngwenya ; the director general of zambia development agency, mr andrew chipwende ; the ati chief investor relations manager, mr cyprien sakubu ; the representative for zambia, mr pizzaro lukhanda ; resource persons ; distinguished invited guests ; members of the press ; ladies and gentlemen. it is my honour and privilege to be amongst you all this morning. i wish to express my appreciation to the african trade insurance agency for extending an invitation to me to deliver a keynote address on this important workshop. let me begin by commending the african trade and insurance agency ( ati ) for the important role they continue to play in facilitating trade not only in this country but in the entire region and indeed the continent at large. i am no stranger to the role that ati plays in helping to build economies in the countries that it operates as i have been a client and a supporter of ati ’ s products and services in particular in my previous life as head of the pta bank. i have seen first - hand, the impact that ati has had in many countries, including in zambia, where ati has facilitated trade and investments worth more than $ 925 million since its inception. i am further informed that ati has so far this year supported zambian companies and businesses by offering insurance cover to some very large and essential projects primarily in the energy, mining, manufacturing and agriculture sectors valued at over $ 726 million. the agency has also continued to assist many african countries by facilitating foreign direct investments with its political risk insurance that protects investors. ladies and gentlemen, the role that trade plays in the economic growth and development of a country cannot be emphasised. there are many regions and countries of the world that have been able to lift their peoples from poverty to prosperity through trade. however, although africa in general and zambia in particular has an economy which is characterized by a relatively high degree of openness, trade has not been utilized to an extent of achieving rapid and sustainable economic development necessary to eliminate poverty. this failure for trade to serve as a catalyst for sustainable economic development could be attributed in part to the nature of africa ’ s export trade which is heavily