gratitude to the commercial banks that have sent their representatives to come and attend this event. the support we have received to date has been unflinching throughout the years. we shall continue to work together in order to ensure that the levels of service delivery to our customers is raised and maintained at high standards. distinguished guests, this really, is not an occasion for long - winded speeches. it is rather a time when we should be having some fun, watching both our ladies ’ football teams from the ndola and lusaka offices battling it out on the battle field. thereafter, it will be the turn of the gentlemen to break a sweat in friendly combat. we naturally expect that when the opportune moment is presented, commercial banks and other invited entities will also produce teams comprising ladies and gentlemen – after all the central bank of the republic of zambia will soon be showing you precisely how it is done. it is now my honour and privilege to officially launch the commencement of 50th anniversary celebrations of central banking in zambia. please enjoy yourselves. i thank you. bis central bankers ’ speeches

– who to lend, what maturity structure, interest rates, asset management – have to be decided by each bank. greater freedom implies greater responsibilities. and there are many more players – public sector banks, private banks, co - operatives and nbfcs, etc. markets are free and more complex. 2. you may ask – so what? it is upto each corporation or its shareholders – if it does well, they will gain ; if they don ’ t, they will lose and so be it. it is their business, why should we collectively worry? here, banks and financial institutions are in a completely different category. what happens in a particular bank is a concern of all. fear of contagion and systemic implications. think of some recent bad cases involving banks, including co - operative banks. relatively small, but affected a lot of institutions, including some several times larger. in india, because of the dominance of public sector institutions, investors expect more. ( example of ltcm fund in u. s ). 3. another factor is that we live in a more volatile and inter - linked world. effects are instantaneous. if one letter of credit fails, it may affect other countries and other institutions. so much greater international attention. examples of east asia and japan. so international institutions are getting involved – in codes and standards, and in assessment of corporate governance structure. so, for all these reasons, this subject has acquired a completely new dimension and wider interest. and we can no longer avoid it. as you discuss the subject, please keep this in mind. what is the core of corporate governance – for private entities, it may be profit. in the banking sector, it seems that it is risk containment, and early warning systems and prompt corrective action to avoid failure. it is not risk aversion, but risk assessment and providing adequately to cover risks. it is also clear that earlier the detection, the lesser the cost. obviously, without a viable and accountable corporate governance structure, all this is not possible, however able the ceo. the three essential ingredients of corporate governance in this context are : ( a ) checks and balances : auditing committees, external and internal accounting systems which are independent of decision making on credit and borrowings. ( b ) clear division of responsibility : both vertical and horizontal, so that responsibility is taken by those who make the decisions. ( c ) disclosure and transparency : so nothing stays hidden for long, once a decision has been made