purposes, was aimed at providing an appropriate platform for pricing corporate bonds. furthermore, the bank of zambia in collaboration with luse and bankers association of zambia is in the process of extending the services of rtgs to settle stock exchange transaction. another welcome development to the capital market is the recent b + sovereign rating assigned to the country, as well as, the reclassification of zambia as a low middle income country. these developments reflect the country ’ s recent strong economic performance. as bis central bankers ’ speeches you may be aware, gdp growth has averaged above 6 % over the last five years, supported by low inflation and a positive external sector performance. these favorable developments put the zambian business community and government in a strong position to access finance for sustained economic growth and improved living conditions of all citizens. ladies and gentlemen, in the medium to long - term the prospects for zambia ’ s economy are bright. the robust gdp growth momentum is expected to be maintained premised on favourable growth performance in mining, agriculture, construction, tourism, manufacturing among other sectors. this will be supported by favourable commodity prices on the international market, government ’ s investment in infrastructure and expected increases in foreign direct investment. further, inflation is expected to remain in single digits owing to prudent macroeconomic policies and the bumper harvest recorded during the 2010 / 11 harvest season which is expected to dampen any negative effects on overall inflation through the food component. accordingly, interest rates are expected to decline further. in addition, the macroeconomic environment is expected to remain favourable due to a projected strong external sector performance. in this regard, the capital market has an important role to play. i wish therefore, to commend bancabc for sponsoring the case handbook, which i am sure will provide valuable information to active and potential players on the stock market in zambia. with these remarks, i wish to declare the case handbook officially launched. i thank you for your attention. bis central bankers ’ speeches

ways and means advance, which were the critical prerequisites for the evolution of money, government securities and forex markets. i recall that when i joined as governor three years ago, i emphasised the continuity and change aspects of the policy. this is a defining characteristic of the indian reforms, which have been described as cautious. shri vajpayee, the then prime minister, and shri jaswant singh, who was then the finance minister, supported this approach. shri singh provided strategic guidance and put full trust in my professional skills and judgment. in fact, i believe that, over the fifteen years of reforms, all our leaders with their diverse backgrounds, and their varied qualities, have contributed to an economic policy in india that has given us some pride today and great hope for tomorrow. on the present status of the banking sector, admittedly, there is scope for considerable improvement. yet, its strength and resilience in ensuring growth and stability have been recognised universally. in the major emerging economies, we compare favourably in the services sector and are seeking to compete in the manufacturing sector while we try to catch up on the fiscal and infrastructural fronts. however, it is in the financial and banking sectors that we are unarguably ahead. our banking sector reform has been unique in the world in that it combines a comprehensive reorientation of competition, regulation and ownership in a non - disruptive and cost - effective manner. indeed our banking reform is a good illustration of the dynamism of the public sector in managing the overhang problems and the pragmatism of public policy in enabling the domestic and foreign private sectors to compete and expand. similarly, the financial sector of india as a whole exhibits vibrancy and resilience. the government securities, money and forex markets have significant public policy implications for a gradually - opening emerging market economy. these have developed during the reform period, with impressive diversification of participants and instruments. the institutional, technical, and micro - structural aspects of the indian financial sector are in alignment with the best global standards. here, again progress achieved in financial sector is a testimony to the healthy evolution through mutual cooperation amongst government, monetary authority, regulators, and above all, diverse market participants – domestic and foreign, in public as well as in private sector. reflecting on future prospects in banking, immediate focus has to be on the cleaning up of the remnants of undercapitalised banks, while concentrating on improvements