stage a number of possible hypotheses might be put forward : • the combination of lower equity and commodity prices might be signaling a weaker global outlook ; • it might simply be an indication that equity markets had previously been overvalued and in need of a correction ; or • the equity price falls might in part be an irrational response to commodity price falls and other economic data, or at least contain an element of overreaction to genuine signals. most likely there is an element of validity in more than one of these, and no doubt other hypotheses can be put forward as well. as i said, i don ’ t think it is possible to be definitive about these things, but it is relevant to note that market and media commentary often errs on the side of being unjustifiably gloomy. a few points can be made on that score : • first, as always, the recent equity price movements have to be put in perspective. this is not the first bout of nervousness in these markets : in the advanced economies there was a similar one late last year, from which markets subsequently recovered, and the recent declines reverse only a small part of the cumulative gains during the post - crisis recovery period. • second, there seems to have been relatively little new economic data in the early part of this year to trigger a significant reassessment of the global outlook. and even though the chinese economy has been slowing, it is still growing at a reasonable rate. • third, the hypothesis that falling equity and falling oil prices are inter - related responses to a weakening in global demand is hard to sustain. the falls in oil prices seem to be mainly driven by strong supply, not weak demand, as indeed has been the case for a number of other commodities such as iron ore. consistent with that, other non - energy commodity prices have been relatively stable during this recent period when oil prices have continued to fall. this has important implications for the general outlook. while an oil supply expansion could be expected to have a range of complicated effects on producers, consumers and holders of energy assets, it would normally be considered a net positive for the world as a whole. i think these points argue against putting an excessive focus on recent market movements. but, that said, there has clearly been an increase in market volatility around the word in recent times and a heightened focus on financial risks. implications of the global risk environment for australia at this point it is useful to ask how

mauritius has issued the new guidance notes to the industry on a consultative basis. the customer due diligence document also attributes the responsibility to national supervisors for ensuring that banks have minimum standards and internal controls that allow them to know their customers. given the increasing responsibilities of bank supervisors, i have proceeded with a significant capacity building in the supervision department of the bank. the staff has been almost doubled and is being intensively trained to meet the challenges in the years ahead. last year, we underwent an fsap assessment at our own request. the bank of mauritius act and banking act are being revised to further enhance compliance with the “ core principles ” and to take into consideration the recommendations made by the fsap team following its detailed assessment of compliance with the 25 core principles for effective supervision and transparency of banking supervision. the bank issued on november 2002 a guideline on public disclosure of information by financial institutions. rigid bank secrecy laws are no longer acceptable in the global fight against money laundering. information has to be shared with competent authorities. in this connexion, the financial intelligence and anti - money laundering act 2002 established the financial intelligence unit. the fiu has explicit power to gather, analyse and disseminate information. in the last few years we have made a great leap forward in improving the regulatory and supervisory infrastructure in mauritius. we have since quite sometime adopted a prophylactic approach in our regulatory and supervisory policies in respect of our banking industry. the job of regulators and supervisors has never been an easy one. it is often misunderstood. it ’ s a highly complex one full of invisible hurdles. the hurdles stemming from inside the country are relatively easy to overcome. those stemming from abroad are not that easily overcome. regulators and supervisors across the world have however been doing an excellent job. they are never congratulated for their good performance. and never expect to be congratulated. so let us congratulate ourselves. let me wish the annual meeting of the ogbs the very best of success. may i also wish you a pleasant stay in mauritius. thank you.