risk - based supervisory framework becomes fully operational, banks posing higher risks to the system will be subject to more intensive supervision. we have also introduced a framework for domestic – systemically important banks since july 2014. all banks which have been identified as being systemically important are required to hold a capital surcharge in the range of 1 % to 2. 5 %. mauritius, as a highly open economy, has a few large corporates that dominate economic activity. these corporates require a close monitoring. a large exposure limit is in place to curtail the exposure of any borrower or group of borrowers. the basis for computing the large exposure limit was recently enhanced from capital base to tier 1 capital. further, in our framework for domestic – systemically important banks, exposure to large groups is a supplementary indicator. these large groups have been defined as having an exposure of at least rs2 billion to the banking sector. another topic that warrants attention is climate change and the reduction of global carbon emissions. the financial services industry has an important role to play in that area. i know that some central banks are already at an advanced stage in their work and that much work has already been done on that subject at the level of the fsb. in sub - saharan africa, central banks have not focused extensively on climate change. we are eager to know more about the work that has been carried out by the fsb. climate change related measures could also, perhaps, be on the agenda for future meetings. an area on which we must also focus is that of the application of technology in finance. the emergence of fintech represents an opportunity for africa. advances in areas of finance - related technology, such as blockchain, mobile payments and artificial intelligence are opening up new possibilities for financial service firms. this is an area where regional cooperation will be of paramount importance. the setting up of the fintech association will give the impetus to position mauritius as a regional hub for that industry. ladies and gentlemen, our common ambition is to transform africa into an innovative and technologically - enabled continent. however, as regulators, we have an important role to play in fostering innovation. it is our responsibility to ensure that banks operate safely and comply with applicable laws. this is why we must ensure that our regulatory and supervisory structures remain effective by constantly adapting them to changing technologies and business models. since 2017, banks are allowed to have recourse to cloud - based services subject to the fulfilment of certain

more pointedly to acknowledge both the binding power of statutory law and the more subtle capacities of common law that survive, resilient, through the manifold tests of time. performance criteria the commonwealth heads of government at their meeting in june this year formally addressed the governance of international banks that : “ global crises require truly global and universal response … ” and they called on these institutions to exhibit : more legitimacy, fairer representation, more responsiveness, flexibility, transparency, accountability and effectiveness … they made a commitment to pursue these matters with the un and in other international fora, as a matter of urgency. but for us now, this very critique of governance of international banks can provide the tests for our future plans. are we giving enough weight in our plans for regional union to these seven critical tests : legitimacy, representation, responsiveness, flexibility, transparency, accountability and, above all, effectiveness? how do we score on these test at national level? tough talk from the commonwealth ; tough tests for us! yet are these not the very pertinent principles we should adopt for governing the governors? as we look forward to our regional banking and our closer monetary engagement, what import do these performance criteria have for any future contract of marriage? what do these principles imply, indeed, for the governance of central banks at national level? will they help to provide a new more relevant architecture, to ensure the resilience we shall need, to confront the looming crises of confidence and sustainability in our region and beyond? for as a p herbert, that wit and lawyer of yester - year, once remarked : “ the critical period in matrimony is breakfast - time ” the cyber - state financial services and their ict dependent back - up are rapidly becoming the over - riding powers in our economies. our leaders here refer to our “ cyber ” city. now that word “ cyber ”, derives from the greek, meaning “ steersman ”. it has become a metaphor for guiding the ship of state. but after breakfast when we go ahead in regional banking, if the governments are at the helm ; the private sector, the engine, are the central banks to be confined to be merely the brakes? the trouble with the imf and the world bank is not in their lack of capacity for applying or releasing the brakes, but they ran off the road when they tried their hand at navigation and driving. this sorry tale has lessons for us at national level at the interface of the governance of banking, finance and political government.