bank introduced the policy rate which is aimed at fostering transparency in the determination of lending rates. under the new framework, all financial institutions are now required to realign the pricing of loans with reference to the policy rate. furthermore, in january 2012, the bank of zambia introduced the new minimum capital requirements for commercial banks. the minimum primary capital was raised from k12 billion to k104 billion and k520 billion for locally and foreign owned banks, respectively. this measure is intended to make commercial banks more resilient to financial instability and provide banks with strong balance sheets that would meaningfully support economic activities in the country. i am pleased to note that stanbic bank zambia limited was one of the first banks to reduce their lending rates in line with the objective of the bank of zambia policy rate. i am also pleased that stanbic fulfilled the new capital requirements well ahead of the time set for the exercise. before the end of may 2012 stanbic had fully met the capital increase requirement well ahead of the deadline of 31st december 2012. we are confident that the measures taken collectively by the bank of zambia and commercial banks will provide enhanced scope for more financing at lower cost thereby facilitating further growth of the economy and the sme sector in particular. ladies and gentlemen, let me take this opportunity to appeal to all smes and individuals that obtain financing from financial institutions to be responsible borrowers by ensuring that these loans are paid back as the failure to settle obligations destabilises the banking sector and leads to increased cost of borrowing. as you all are aware, banks play a crucial role in financial intermediation and this is enhanced by branch network expansion programs. thus, there is need for all financial sector players including msmes to play their role in augmenting savings mobilization which will in - turn provide the necessary financing to the productive sectors in the economy. in concluding, i would like to encourage banks to seek various ways of supporting the smes not only in soweto market but in other underserved places throughout the country. for instance buseko market in lusaka and chisokone market in kitwe would offer huge opportunities for banks and other financial players. let me also congratulate stanbic bank for introducing the sme tamanga account and for streamlining processes such as customer bis central bankers ’ speeches evaluation and account opening procedures to cater for the special circumstances of this very important part of our economic sector. it is now my honour and privilege to declare the sowe

further, barclays bank zambia has continued to work closely with junior achievement zambia where i serve on the board. the bank has been providing office space as well as hosting the meetings of junior achievement at its premises. as a matter of fact, on 22 february, 2009, the junior achievement worldwide / barclays bank partnership was launched in dubai. as a result of this partnership ja zambia receives annual grants which are utilized to deliver ja entrepreneurship and work - readiness education to the local young people. i further wish to acknowledge the contribution that barclays bank zambia plc continues to make to the development and deepening of the banking sector in zambia. clearly mr. masud has been a key factor in the process and our expectation is that the incoming caretaker managing director mr. bret packard will continue to progress this process. it is in this vein ladies and gentlemen that i request you to join me in formally wish mr. masud success in his future endeavors as we welcome mr. bret packard, the new acting managing director at barclays bank zambia plc. thank you.