economic crisis pose a real challenge to the banking sector through increased non - performing loans. for instance, non - performing loans were recorded at 7. 2 % as at december 2008 but has almost doubled as at september 2009 to 13. 1 %. in order to mitigate the high credit risk noted in the banking sector, it is important for banks to address the risk posed by information asymmetries through a credit information sharing mechanism. to this end, the bank of zambia through nb circular 3 / 2008 of december, 2008 made it mandatory for banks and other financial service providers in zambia to go through the credit reference bureau before a loan is provided. consequently any loans approved without passing through the credit reference bureau will attract regulatory action. i must also mention here that in striving to increase credit, banks must always comply with the rules and regulations as stipulated in the banking & financial services act and other subsidiary regulations to ensure the safety of customers ’ deposits. furthermore, much more credit needs to be directed to sustainable productive sectors like agriculture, manufacturing and tourism in order to drive the economy forward and not lending for consumption only. ladies and gentlemen, it is pleasing to note that despite the recent challenges facing the banking sector, stanbic bank zambia limited ’ s commitment to growth and re - investment is unwavering. the bank continues to be adequately capitalised with its total assets accounting for 12. 1 % of the banking sector ’ s total assets. its deposit base remained strong at 12. 9 % of the total industry deposits while total loans accounted for 13. 8 % of the sector ’ s total loans as at end - october 2009. the bank has a network of 12 branches including this mulungushi branch and about 47 automated teller machines. in fact, on 10 july, 2009, i was privileged to participate at the “ foundation stone laying ” ceremony for the multi - billion stanbic bank zambia limited new head office building. i therefore, commend the bank for its relentless effort in trying to modernise its facilities and expand its network. allow me to conclude by appealing to all banks and other financial institutions to explore ways of enhancing the efficiency in service delivery. by enhancing efficiency, banks will be capable of offering more affordable banking services. this has the potential of drawing a larger number of zambians to the financial system resulting in an expanded banking clientele for the benefit of both the banks and the economy. this will go a long way in complementing the government and the bank of zambia

development objectives. it is hoped that these procedures, along with reviewing the expansion in government spending, will achieve the targeted goals, and inflation will resume its pace and stabilize at appropriate levels in the near future. custodian of the two holy mosques, the world is experiencing a crisis that threatens economic growth and financial stability in several major countries of the world. this crisis has prompted authorities in these countries not only to take unusual measures to protect their financial stability but also to review their supervisory and control regulations of the financial system, while economic policies are being affected by competitive goals, namely, maintaining economic growth, controlling inflation and maintaining financial stability. in the kingdom, the conservative policies and prudential measures taken by sama, to ensure the strength and stability of the national financial system, have had a great role in protecting the financial system from being affected by shocks that it may face due to domestic or international developments. the value of such measures may not be felt or appreciated unless the need arises. may allah guide your steps to greater success.