my next subject. 42. most of us here can remember when basic online banking was a novelty, and how we faced new challenges in cybersecurity. in the years to come, we are going to see continued transformation. we have already issued licences for eight virtual banks. 43. i believe we are only just starting to see the beginning of this. the future could be one where physical bank branches are just a memory – like public telephones on the street. artificial intelligence ( ai ) will lead to all sorts of possibilities in terms of client - behaviour and data analytics, and probably in areas we do not even anticipate. 44. the potential is in some ways very exciting, but it also raises all sorts of concerns. cybersecurity and data privacy are ones we all already face. but what about the possible implications for risk management? we do not know where new technology might lead us – so by definition we cannot predict what the risks will be. and what about the human factor in the relations between banks and customers? an ai system may be very smart, efficient and accurate – but will it have an understanding of morality? can it make the right ethical judgement? can it have a sense of fairness or decency? 45. i must be honest and say i cannot answer these questions. but it is clear that new capabilities for technology will require new capabilities from people. the industry could be entering a very different dynamic, where what is now a decade of change takes place in a year. culture 46. this is going to put new burdens on all of us. i believe that, more than ever, we will need a basic sense of purpose to help us keep everything in perspective. that brings me to my last subject – that of culture. 47. such qualities as integrity and respect are essential to maintain the community ’ s trust in the financial system. and, to be honest, this is one area where the hkma cannot impose its will 4 / 5 bis central bankers'speeches on banks. we can push banks to do many things – but cannot enforce morality. 48. i am always reminded of the words of baroness onora o ’ neill – the british academic and philosopher. she said, i quote, that “ overuse of regulation leads to the formula ‘ legal equals right ’ ”. in other words, if the industry focuses only on complying with hkma rules and statutory laws, it will assume all other possible behaviour is legitimate and acceptable. in

inflation is detrimental to our economy because of the following reasons : i. makes planning difficult for economic agents ; bis central bankers ’ speeches ii. companies and consumers are unable to draw up effective investment and expenditure plans ; iii. government is also unable to make good projections of revenue collections and thus unable to effectively plan its current and capital expenditures ; iv. relative prices are distorted leading to inefficient allocation of resources ; v. high cost of investment as interest rates skyrocket ; vi. savings propensity is low as savers are discouraged by negative real interest rates ; vii. in an inflationary economy, interest rates are high and borrowing for investment is inhibited, which leads to : limited access by productive ( private ) sectors to investment funds ; low investment, output and employment ; and lesser impact on the social sectors. ladies and gentlemen, as you share thoughts in this workshop, allow me to underscore the importance, we at the bank of zambia attach to capacity building programmes for all employees in the financial sector. i am reliably informed that during the workshop you will cover a number of important topics including the following : i. analysing the framework for collective bargaining and exploring new trends in collective bargaining ; ii. enhancing negotiation skills and knowledge base of union officials ; and iii. developing a pool of professional union negotiators in zufiaw. i am fully aware that some of the topics that you will be discussing during this forum may not be entirely new to you, but i firmly believe that they may be necessary for purposes of reinforcing what you already know. i therefore, urge you all to take keen interest in all the deliberations if you are to realise the full benefit of the workshop. mr president, no company can sustainably grow if it does not provide mechanisms by which employees can influence their working lives. labour is more than a commodity. unlike non - living factors of production, such as, machinery and raw materials, the work of human beings raises questions about the impact of work and work relations. as you review your collective agreement frameworks, i wish to remind you that there are a lot of common interests and important interdependencies between employers and employees despite the apparent conflicting interests. for instance firms need workers and workers need jobs. ladies and gentlemen, there can be no true bargaining without prudent and effective leadership on either side of the table. this kind of leadership is required for us to achieve our collective objectives.