caleb m fundanga : innovation for leadership excellency remarks by dr caleb m fundanga, governor of the bank of zambia, at the eastern and southern african management institute ( esami ) launch of mba alumni zambia chapter, lusaka, 12 february 2010. * * * the eastern and southern african management institute ( esami ) director general, prof. bonnard mwape ; the president, esami mba alumni zambia chapter, mr. christopher mulenga ; the ecobank zambia limited managing director, mrs charity lumpa ; esami alumni ; distinguished invited guests ; members of the press ; ladies and gentlemen. it is a great pleasure for me to officiate at the launch of the esami mba alumni zambia chapter. i wish to take this opportunity to welcome prof. bonnard mwape and other esami staff that have travelled from arusha to come and witness this important occasion. i am particularly delighted to be part of this launch because my first interaction with the esami mba alumni members was during the recent summer school event held in arusha, tanzania, where i was invited to present a paper on “ the effects of the global economic crisis on zambia ”. indeed my memories of that lively interaction are still very fresh and that is why i graciously accepted to officiate at this function when i received the invitation from the president of the association. ladies and gentlemen allow me to congratulate the president and his team for this excellent initiative of bringing together individuals with a common academic background under the alumni umbrella. i am informed that one of the objectives of the association is to utilise the acquired scholarly knowledge and experience to add value to society through leadership in various projects and initiatives. i know that alumni associations world over have existed for centuries and most of them have one basic principle, that of benefiting members wherever they may be and for free. however i am told that your association other than just carryout activities for the benefit of members will go a step further to do benevolent activities for the benefit of society at large. this is commendable and i am looking forward to see what initiatives you have outlined to advance welfare in our society. mr president, the theme for this launch this evening “ innovation for leadership excellency ” is indeed very timely and appropriate to the norms and beliefs that i am told your association espouses. it is innovations such as yours that gives us the comfort that you are indeed giving back to society following the huge resources that were invested in

. 9 billion equivalent ) at the end of 2011. meanwhile, the growth of the rmb debt securities market has been phenomenal. in a short space of 5 years, the annual issuance amount lodged with the central moneymarkets unit ( cmu ) in hong kong increased by 16 times from a modest amount of rmb 10 billion ( usd 1. 4 billion equivalent ) in 2007 to rmb 172 billion ( usd 27. 3 billion equivalent ) in 2011. the growth momentum is expected to pick up further after china ’ s announcement to formalise the use of rmb in foreign direct investment ( fdi ) in 2011. the upside is very significant as china ’ s total fdi amounted to usd 116 billion in 2011, or rmb 750 billion equivalent. besides facilitating the rapid development of the sukuk and dim sum bond markets, more importantly, the pilot platform will contribute significantly to financial stability in the asian region. with the advanced economies undergoing structural adjustment and fiscal consolidation, the two - speed recovery will continue to entice portfolio flows into asia. the key challenges for asia are to channel such flows to productive use, reduce concentration in short - term positions of the more volatile asset classes, and to avoid such flows spiking up a bis central bankers ’ speeches property price bubble. channelling the inflows into the bond market will serve these useful purposes as the investors are typically institutional investors who take long - term positions in strategic economic sectors. the global financial crisis has reminded us of the destructive powers of a liquidity crunch and the need for quick access to local currency liquidity in times of stress. in particular, the increased risk aversion arising from the recent financial crises and heightened alertness to the counterparty exposure have raised the demand for secured lending. as an illustration, the average tripartite collateral management deals outstanding administered by euroclear bank increased substantially from eur 76 billion in 2001 to eur 325 billion in 2011. an important function of the pilot platform is to enable financial institutions to make use of securities held in one of the partner systems as collateral to conduct secured borrowing in the local currency of another partner economy. as an example, a european bank can make use of its securities held with euroclear bank as collateral to borrow hong kong dollar to meet the liquidity needs of its hong kong subsidiary. the cross - border and cross - currency collateral management service to be provided by the pilot platform is a timely solution to meet this market need, and