4 - 6 2. 5 - 16 - 12 - 8 - 4 quarters sources : bank of england. bloomberg, chicago board options exchange, debt management office, london stock exchange, merrill lynch, thomson datastream and bank calculations chart 3 : bank lending to households and nonfinancial companies in the uk chart 4 : major uk banks ’ leverage ratio percentage of gdp households non - financial companies sources : bank of england, thomson datastream and bank calculations. sources : published accounts and bank calculations chart 5 : major uk banks ’ customer funding gap, household saving ratio and foreign interbank deposits chart 6 : major uk banks ’ and lcfis ’ credit default swap premia major uk banks us commercial banks ( c ) us securities houses european lcfis jul. sep. nov. jan. mar. may. jul. basis points sep. sources : bank of england, dealogic, ons, published accounts and bank calculations. sources : markit group limited, thomson datastream, published accounts and bank calculations. chart 7 : three - month interbank rates relative to expected policy rates chart 8 : three - month uk interbank rate relative to expected policy rates sterling basis points basis points euro us dollar ( d ) ( e ) forward spread on 7 october 2008 ( c ) ( c ) forward spread on 20 october 2008 ( c ) jan. apr. jul. oct. jan. apr. jul. oct. sources : bloomberg 08 and bank calculations. jul. sep. nov. jan. mar. may. jul. sources : bloomberg and bank calculations chart 9 : dynamic provisioning specific provisions as a percentage of total loans general provisions as a percentage of total loans total provisions as a percentage of total loans upswing per cent of total loans downturn time table 1 : key actions to improve resilience • macroprudential tools are needed to guard against systemic risk • capital levels need to rise and need to be of sufficient quality • liquidity standards should be strengthened • strengthen the legal framework for depositor protection and bank resolution • better management of cross - border financial institutions • more disclosure, including potential future balance sheet volatility • developing centralised infrastructures for over - the - counter instruments

higher productivity activities and facilitate investment in new industries. involving workers and the private sector was a main feature of this approach. zambia can learn a lot from some of these countries. effective training systems in conjunction with the private sector should facilitate demand - driven training in sectors and locations with high job growth potential, avoiding bottlenecks and improving employability. bis central bankers ’ speeches expanding accessibility to quality training is a powerful instrument for empowerment and inclusion of the youth and disadvantaged groups : women, rural dwellers and persons with disabilities. in some cases, apprenticeships in the informal economy can offer many young people an opportunity to learn a trade and enter the world of work. skills development is a necessary response to the challenge of youth unemployment. effective programmes should involve packages of training - cum - labour - market - services. these should include : providing advisory services and career guidance, vocational counselling, job - search assistance and job placement, as well as access to different types of training, including combinations of learning and earning through apprenticeships or subsidized employment in return for on - the - job training. successful entrepreneurship programmes should also involve providing basic business skills and linking would - be entrepreneurs to mentoring, finance and market opportunities. these integrated approaches are needed to assist young people in their transition from school to work and to tackle the multiple constraints they face on the labour market. the need for effective certification cannot be overemphasised. in conclusion, skills development can make a critical contribution to youth employment promotion and income generation through msmes. coordinated policies linking education, skills formation, and employment are required. well - designed active labour market policies linked with technical and vocational education, on - the - job training and apprenticeships – both formal and informal – are essential for skills development, employment and entrepreneurship and can help alleviate unemployment and underemployment. connecting training providers and employers can be especially effective at sector and local levels. further, involving the private sector is essential to employment creation. furthermore, special attention should be paid to supporting msmes as the most dynamic sources of employment. financial institutions should provide easy access to funds to reduce cost of doing business. the multiple drivers of informality should be tackled through integrated policy packages that promote a gradual transition to formal activities. ladies and gentlemen, this is the challenge i give all stakeholders that are involved in skills development, youth empowerment and development of msmes. thank you. bis central bankers ’ speeches