has to be managed with an applicable agreement, according to section 31a, which was inserted into the competition act. these agreements must be negotiated with the various regulatory authorities within the relevant industries to " coordinate and harmonise the exercise of jurisdiction over competition matters ". but in the case of bank mergers, the competition commission ’ s powers are qualified further with the provision that the minister of finance is, if he deems it to be in the public interest, entitled to assert jurisdiction over these transactions. in the light of this regulatory gap and the amendments to the various laws that arose as a result of it, the competition commission and the reserve bank ’ s bank supervision department met on 9 march this year to begin drawing up a memorandum of understanding. this memorandum would set out how the agencies would proceed under the concurrent jurisdiction framework. only issues of broad principle were discussed but it seems clear that the bank supervision department will perform its duties in terms of the banks act as before, including consultation with the competition commission. the competition commission would then perform its duties in terms of the competition act. share acquisitions in banks or mergers between two or more banks may legally then only proceed once all the approvals have been granted. although the principles of the agreement have been fleshed out, the memorandum of understanding has not yet been finalised and efforts are ongoing to thrash out the mechanics of the cooperation. we believe this memorandum of understanding is a matter of urgency. this agreement is important for a number of reasons. among them, that the operations of the regulatory authorities with jurisdiction over the banking sector must in themselves be regulated. given the importance of the banking sector to the country ’ s economy and financial system, the work and interaction of the various regulators must be set down in an orderly, predictable fashion, so as not to compromise the different interests that arise. and of course, the operations of the regulator must at all times be shaped by the very objectives it is trying to achieve. among these are to ensure that banks are safe and sound, to ensure that the bank ’ s customers have faith and confidence in the bank and the banking system, and to ensure that banks operate efficiently and effectively. 6. competition and the economy it is of course not only the regulatory function that the reserve bank and the competition commission have in common. the competition authorities and the central bank are both concerned with economic regulation, with regulation that produces desired economic outcomes. whereas the bank ’ s interventions are at the macro end of the spectrum, the competition authorities

##ing, equipping and reequipping and beefing up our regulatory and supervisory capacity in the past fifteen years. it ’ s a never - ending exercise and will never be. i understand many of you here are from regulatory authorities in the region. i am sure, you must have acquired additional knowledge for sharpening your regulatory and supervisory skills over the past two weeks. i wish you a pleasant trip back home. those who are from the bank of mauritius, get back to work. thank you. bis central bankers ’ speeches