interbank market, through which banks lend to one another, typically on a short - term basis. in turn, this improves the overall allocation of financial resources, including real returns to depositors and investors, and the channelling of funds to productive use in diverse areas of economic activity. director of ceremonies, in this context, it is a matter of public policy concern that money and capital markets in botswana are in a rudimentary state of development. as a result, there is a limited range of instruments and relatively low turnover and activity in the various markets, more so in relation to instruments for risk - sharing, distribution and mitigation. this tends to result in volatility of both prices and volumes, and limits the choice of instruments necessary for efficient financial and business management. for the banks, in particular, a diverse source of funds that includes a large number of retail depositors and structured long - term funds represents stable funding. this facilitates maturity transformation and support for the range of financial resource requirements of businesses, including infrastructure and utilities projects, as well as households. regarding the short - term interbank market, it is important that banks, although competitors, operate in a collaborative spirit to address any structural impediments to this lack of development and low efficiency, with a view to improving the flow of liquidity and its management in the banking system. the central bank should only be required to provide or absorb liquidity in the market after mutually beneficial trading opportunities among banks are exhausted. the bank of botswana already facilitates such collaboration through industry - wide fora that address issues of mutual concern related to market development in order to foster enhanced and effective support for real economic activity. it is, therefore, important that banks strive for constructive engagement, in this regard, in order to achieve the best outcomes in terms of effective policy transmission and enhanced contribution by the financial system to economic performance. distinguished guests, ladies and gentlemen, as i conclude, let me thank the chief executive officer, mr bogatsu, the board, management and staff of fnbb, for inviting me to be part of this occasion. i wish the bank well and look forward to many more invitations for the opening of fnbb delivery channels or yet another “ brick and mortar ” branch, especially in major villages, such as mochudi and, of course, the rural areas. to bakgatla, dikgosi tsame, member of parliament for mochudi west, district commissioner, council chairman and

so - called international financial crisis, came about in a context in which the banking system was reasonably wellsupervised and focused on the traditional retail business. but, as was noted at the time, neither the economy nor its credit institutions would prove immune to its consequences, in particular to the global recession and to the seizing - up of the regularly used external funding mechanisms. the second crisis is a typically spanish crisis, associated with excesses in the real estate sector, private - sector debt and deteriorating competitiveness, a crisis which in principle seemed to be a familiar bugbear. however, this time the imbalances emerged within a monetary union, which has invalidated many of the instruments used in the past to overcome apparently similar crises. the third crisis is in the euro area, the clearest but not the only sign of which has been the sovereign debt crisis, which has affected spain with particular force. the upshot of the overall impact of these three crises is an extraordinarily complex scenario with multiple and unprecedented interactions, which means we must avoid intellectual laziness and seek innovative solutions to manage an exit from the situation. this is because many of the solutions used in the past are not only no longer available or useless, but – given the side - effects – may even prove harmful. i shall now try to draw your attention to the responses that crises prompt. as is well known, crises, which entail so many personal tragedies, may ultimately have beneficial effects in the countries they affect if the response to them is the correct one. my first observation is that any crisis usually generates not only one response but three types of response. the first bis central bankers ’ speeches reaction leads to the design and adoption of measures whose aim is to prevent a similar crisis recurring. the second response to the crisis drives us to equip ourselves with new tools that mitigate the effects of future crises, because experience tells us that, even assuming that all the preventive measures conceivable today are adopted, it will never be possible to do away once and for all with economic crises. the third response to a crisis does not involve preventing or adopting tools to manage future crises, but looking for the right way to manage the current crisis from which, need i remind you, we have not yet emerged. i make this distinction between the three types of response that an economic crisis always elicits so that my following remarks may be better understood. firstly, i think that most of