as the global economy reevaluates and repositions itself to achieve full recovery, it is but fitting, especially as our nation marks its 50th independence anniversary, that the bank spearheads efforts to ensure that the financial system is robust enough to withstand any future shocks. in doing so, let us recall the developments on the global, regional and sub regional levels before examining the initiatives to reposition the bank. global financial developments your excellency, distinguished guests, as mentioned in my speech last year, the global economy is recovering, though at a slower and unbalanced pace. according to the imf ’ s world economic outlook, global growth was projected at 4. 8 percent in 2010 with asia and latin america experiencing strong growth. africa was also expected to experience robust growth, but growth in europe was sluggish whilst in the united states, it remained subdued. bis central bankers ’ speeches this uneven scenario in global growth has created several downside risks, including risks to the financial sector. there is no guarantee that the problems in the financial sector have been adequately addressed, but there have been concerted efforts to ensure that they do not recur. the introduction of new rules, in particular basel iii is expected to help in this direction, as basel iii will address issues including strengthening risk coverage of capital for banks, the buildup of capital buffers and the introduction of global minimum liquidity standards. however, countries are now realizing that in addition to these new rules there is the need for better supervision and the creation of crisis resolution mechanisms. your excellency, distinguished guests, despite the down side risks to the global economy, there is room for optimism which stems from the progress being made to repair and reform the financial sector, including developing macro prudential approaches to limit systemic risks. monetary policy in the developed economies should remain accommodative in order to serve as the first line of defense in the event of a future shock. exchange rate policies are expected to be designed to support rebalancing of global demand, while structural reforms to enhance access to finance by small and medium scale enterprises ( smes ), should help boost growth and reduce unemployment. finally, better policy coordination among all stakeholders should help alleviate liquidity constraints and rebuild confidence. regional financial trends your excellency, distinguished guests, africa has been reasonably unaffected by the crisis due to the low level of exposure of its economies to international trade and financial flows. the continent experienced encouraging growth in 2010 not only on

development over the years. i want to take this opportunity to thank them all for their contributions in reforming the bank and upholding the dignity and effectiveness of our noble institution. your excellency, distinguished guests, the recent global economic and financial crisis was a wake - up call to the realisation that low and stable inflation, a sound banking system, as well as high and sustainable economic growth, though necessary, are not sufficient conditions for financial stability. as you are aware, the bank had developed the financial sector development plan ( fsdp ) which was approved by cabinet in 2009, to address the shortcomings in the financial sector. it is expected that funding for the fsdp would be provided under a basket fund arrangement with development partners, including kfw, gtz, and afdb, with the world bank assuming a leading role. the bank is in the process of setting up a secretariat for successful implementation of the fsdp for which the head has been appointed. your excellency, distinguished ladies and gentlemen, permit me to proceed with the discussion on the highlights of the reform policies to reposition the bank and the current state of their implementation. strengthening the supervisory role of the bank of sierra leone your excellency, distinguished guests, even though the bank was granted legal sanction by the bank of sierra leone act 2000, its powers and operational autonomy are limited. in order to strengthen its powers in the conduct of monetary policy, its supervisory role and to ensure financial stability especially with the multiplicity of banks, the bank of sierra leone act is being reviewed with technical assistance from the imf. the banking act 2000 is also being reviewed to protect the interests of depositors and shareholders and to further strengthen the bank ’ s supervisory and enforcement powers. the bank of sierra leone has broadened its regulatory and supervisory frameworks to include a number of “ other financial institutions ” in accordance with the provisions of the other financial services act 2001, which is also being amended to ensure compliance with international regulatory standards. the bank has issued revised prudential guidelines governing the operations of commercial banks. these guidelines have clearly specified requirements to address issues relating to capital adequacy, asset quality, liquidity, corporate governance, market risks, etc, which will be strictly enforced. the bank has also adopted the international financial reporting bis central bankers ’ speeches standards ( ifrs ) as its financial reporting framework and has requested the commercial banks to do likewise. furthermore, the bank of sierra leone has