is nothing wrong with greed. in fact, our capitalist system can be interpreted as being based on the concept of greed. it ’ s only when you are far removed from the domain of wisdom that greed takes a strong and pre - dominant foothold in your profession. greed, the predator ’ s gene, has to be tempered by fear of losses. unfortunately, we do not have the philosophical capacity to issue a guideline on greed but we have, years ago, issued a guideline on corporate governance. i urge you all to pay special attention to governance while conducting audits. i am particularly happy to note that there are increasingly more interactions between the accountants in the auditing profession and the bank of mauritius, not only on matters relating to governance but on many aspects of the auditing profession. the bank of mauritius gladly welcomes the interactions. and, finally, a few words on ethical behaviour in the auditing profession. remain loyal to your profession and always guide your clients to the best practices. yours is an honourable profession. maintain the standard required of you. some high profile corporate failures in the past have been caused by creative accounting and concealing the true risks of the companies which were, in certain cases, moved off balance sheet. in some cases, accountants working for these companies devised such financial shenanigans which were facilitated by compliant or complacent auditors. these short term gains often result in long term pains, both for the individuals and the economy, too. never condone such practices. we cannot compromise our reputation by resorting to such questionable practices. a strong and stable banking system is vital to the robustness of an economy. you, as auditors, must refrain, at all cost, from producing audit reports that, instead, contribute to a weakening of the banking system. i am pretty well aware that the bank of mauritius is said to have been very tough and often quite rude with some of you as with others. as i have always said, the bank of mauritius is “ cruel only to be kind ” to you and our jurisdiction. i urge the accountants to reflect on emerging challenges that the profession is facing and request the mipa to collectively take steps to meet those challenges. you must be aware that a lack of skills in certain areas of auditing is now being palpably felt. your association is having a formidable agenda for action. may i wish you all very fruitful deliberations during the forum. i thank you for your attention and wish

urban backstrom : the importance of a well - functioning stock market remarks by mr urban backstrom, governor of sveriges riksbank, at the world federation of investors 20th world congress, stockholm, 7 june 2002. * * * first i want to express my gratitude for the invitation to attend your congress and briefly discuss with you the importance of a well - functioning stock market. let me start by saying that just as it is important that networks for transport, electricity and telecommunications function properly, so is it essential that, for example, payments can be transacted, capital can be saved and channelled to the most profitable investment projects and that both households and firms get help in handling financial uncertainty and risk as well as possibilities of spreading consumption over time. financial markets constitute an important part of the total infrastructure for every economy that has passed the stage of domestic production. the financial system performs three main tasks : firstly, it handles payments ; secondly, it channels savings to investments with a good return for future consumption ; and thirdly, it spreads and reduces economic risks in relation to the players ’ required returns. a smooth functioning of all these activities facilitates economic growth in that lower costs and risks promote the production of goods and services as well as employment. in this way the financial system contributes to increased prosperity. the stock market is one of the most important sources for companies to raise money. experience has taught us that the price of shares and other assets is an important part of the dynamics of economic growth. rising share prices, for instance, tend to be associated with increased business investment and vice versa. share prices also affect the wealth of households and their consumption. therefore, central banks tend to keep an argus eye on the development of the stock market and reflect on how the financial system functions. another reason is the oversight of financial stability. today, i would like to confine my brief remarks to some aspects that have to do with the fact that shares now weigh considerably more heavily in household portfolios than was the case thirty years ago. what are the implications of this trend? increased interest in stock market investment in recent decades the financial system in most western countries has undergone a remarkable transformation. one feature of this development is disintermediation. a portion of the funds involved in saving and financing flows directly to the financial markets instead of being routed via banks ’ traditional lending and deposit operations. the general public ’ s heightened interest in investing in the stock market, either directly or through mutual funds, has been