baboo r gujadhur : challenges and solutions to implementing internationally compliant and domestically robust banking regulations in emerging economies introductory remarks by mr baboo r gujadhur, first deputy governor of the bank of mauritius, at the workshop on “ challenges and solutions to implementing internationally compliant and domestically robust banking regulations in emerging economies ” in collaboration with the commonwealth secretariat, balaclava, 6 – 7 april 2006. * * * professor avinash persaud mr. percy mistry miss cheryl bruce, commonwealth secretariat members of the board of bom distinguished guests colleagues and friends good morning my first duty is to welcome you all this morning on behalf of the bank of mauritius which is cosponsoring this workshop together with the commonwealth secretariat. i hope you have an excellent stay in our midst and that you will take away by the end of the workshop some novel ideas on the issue of banking regulation, with specific reference to the implementation of basel 2 in small and emerging economies. i would like to extend a special welcome to the commonwealth secretariat who have accepted to cosponsor this workshop along with the bank of mauritius. the commonwealth secretariat, as you know, have always held the interests of their members at heart and their participation in this event is a testimony of their commitment to the advancement of commonwealth countries. our friends from the region and ourselves stand to benefit from the experience the commonwealth secretariat has acquired from its exposure to a wider range of countries at different stages of development. from basel 1 to basel 2 this workshop comes at an opportune time, when the regulation and supervision of banks is undergoing a vast amount of change. change, as you know, is often viewed with apprehension and is frequently met with resistance. it is true that change is accompanied by threats against those who are satisfied with the status quo. but we have to recognise that change brings along new opportunities and promises. it usually provides an impetus to unleash new potentials. in a situation of changing circumstances, success embraces those who not only adapt to change, but who also position themselves as agents of change. in fact, we should evolve so that change becomes our second nature. the financial system in different countries has been evolving for many centuries to match the demands of the real sector. however, the pace of change has been much faster and more global during the two last decades. propelled by wider access to education and knowledge, advance of technology and intensification of competition, new financial products and services, with varying degrees

can plough our own furrow and seek salvation in our own different ways. regardless of one ’ s size or location, we can all aspire to the premier league. we have in our midst this evening my venerated tutors and mentors from my undergraduate days at oxford and a bevy of dignitaries – indeed this is the kind of moment that you absolutely must share with family, friends, partners, colleagues from international institutions, and all those who walked part of the way with you in your life, personal, social, professional, or a mixture of all of them. i thank you all for your presence here to - night. as i landed at heathrow the other day, my mind drifted off to my first days in england when i was a carefree student, from a remote island colony, a rural country boy from a village with no electricity, no telephone, and little running water, who had never spent more than a couple of nights away from home, and who could read and write latin and greek better than his peers. i was more interested in satisfying my deep curiosity for all the novelties that i was discovering. i wasn ’ t really thinking of my future. in fact, i was wondering what to do with my life. i was barely out of my teens, not yet twenty. i had a prized seat at merton college, one of the oldest – if not the oldest – at oxford university. i was going to read greats … but i was going through an existential crisis. i had successfully resisted my parents ’ calls to pressure me to become a lawyer or a medical doctor, the prestigious occupations that attracted the six “ laureates ” of which i was one. i was quite aware that a university education was not vocational or professional training. but i could not help asking myself, was there much mileage left in the classics? i had just been reading some maupassant short stories. the punch line of one of them was fresh on my mind : le latin ne nourrit pas son homme! there used to be an outfit called mauritius students unit, operating from a small office in upper montagu street, off baker street, run by an energetic lady called miss rittner. she set up an interview for me at merton. peter chellen, also with us tonight, used to work at the unit. i found myself on the short train journey to oxford – and soon wondering whether i had alighted at the wrong destination when the first