we get to go home with lighter hearts. it ’ s the fires that supervisors miss or could not control in time that bring the villagers running out with their pitchforks and ropes for the fire starters and for us, the supervisors. so what does this have to do with my third message which in the changing face of supervision is “ you ”. the word “ face ” gives supervision a human element, so all supervisors are the face of supervision. so how is the metaphorical / symbolic face of supervision – yours, the supervisors and inspectors – changing? good supervision is an extremely challenging and often underappreciated task. at the central bank of trinidad and tobago, two initiatives are supporting good supervision : the ability to act and the will to act. this is intended to give the face of supervision, our supervisors, more power and presence... after all a face should not just be about good looks. we currently regulate the banking, insurance and private pensions sectors of the financial system, but we are also planning to supervise five systemically important financial institutions, credit unions and bureau de change. we have re - examined the areas we must now supervise and are re - resourcing to suit. we do not have the luxury of time to grow supervisors from entry level to seasoned professionals – a process that can take upwards of a decade. the country will not tolerate the excuse of not having enough competent and highly - skilled supervisors. we are, therefore, taking a more pragmatic approach to building supervisory capacity. we are aggressively recruiting experienced people from the private sector and placing them in key supervisory positions in the financial institutions supervision department. we have recruited a second deputy inspector, brought in a highly sought after chief actuary and for the first time we have hired a pension fund specialist, credit risk specialist and anti money laundering expert. the faces are changing. they are moving from middle - aged central bankers who came up through the ranks, to more specialized experienced professionals who come from the private sector. we are exploring all the areas that currently need our supervisory attention and also thinking ahead. we will continue to head - hunt respected talent from the private sector. let me ask you this question, “ what are the backgrounds of your staff in your respective supervision departments? ” therefore while you are the changing face of supervision, and i ’ ve discussed that face and how it is changing and what it should go to, please allow me to address some major changes, not to the face of supervision, but to

this increasing interconnectedness is building up systemic risks and raises the chance of financial contagion spreading throughout the caribbean region, especially if another major hurricane strikes or another government undertakes a significant restructuring of its sovereign debt. i must remind you all that we are living in one of the most natural - disasterprone regions in the world : the six small island states in the eastern caribbean currency union stand out in terms of the frequency of hurricanes. a natural disaster can be expected to hit the eastern caribbean roughly once every two and a half years. the caribbean is also home to nine small island states considered to be among the world ’ s heavily indebted countries, with a rising probability of debt default. grenada is currently negotiating a restructuring of its sovereign debt, which, when completed, will bring to ten ( 10 ) the number of sovereign debt restructuring episodes in the caribbean within the past decade. we, therefore, cannot afford a tick - box, compliance mentality. as supervisors, we must not underestimate these gathering risks. we must expand cross - border cooperation through exchange of information and policy collaboration. remember … the caribbean ’ s financial ecosystem is at stake. as i close, let me encourage you to use this opportunity for discussion, but not just as a talk shop. take this meeting seriously, as given our current situation what is discussed here can have the potential to impact the caribbean region. take this experience and return to your home, wiser and ready to act. as supervisors, we need to remember who are at the heart of the financial system. we need to remember it is real human hearts : a teacher with a loan, a market vendor with a savings account in a bank, a bus driver with an insurance policy, or a doubles vendor with an investment in a mutual fund. our duty is to these market participants, who all rely on us. when the story is told, let it be said you, we as the guardians of the financial system, did all we could in our power, to protect the economies of our region. to conclude, let me reiterate the following key messages : • first, clico and its contagion was an early warning for us in the caribbean. rising financial interconnectedness is building up systemic risks and the likelihood of financial contagion throughout the region. this requires supervisors to see the whole financial ecosystem and not just the individual trees. • second, changes to supervision are our protection against those gathering financial storms. supervisors must