factors tend to improve capital ratios, offering a reassuring picture of the solvency of individual banks from a micro supervisory perspective. yet historical experience shows that rapid credit growth is usually undertaken at the cost of increasing the systemic – or tail – risks for instance by lowering lending standards via undiversified housing exposures or excessive reliance on short - term market funding. again, the crisis vividly raised awareness on the endogenous nature of many systemic episodes of financial instability and on their negative externalities that could be of great importance in determining macroeconomic outcomes. from a policy perspective, the new focus has led to an increased interest in the macro - prudential approach to bank regulation and supervision, following ideas developed originally by the bank for international settlements. as a result, the international debate has shifted focus on how to detect and prevent systemic risks. in europe the new regulatory and supervisory infrastructure currently emerging should provide supervisors with enough tools also on the macro prudential supervisory side which should support them to curb these risks specifically and to reduce the pro - cyclicality of the financial sector. regarding macroprudential instruments the initiative can be taken by national authorities but at the same time the ecb will also be empowered to apply higher requirements for capital buffers and other prudential measures specifically set out in relevant union law, if deemed necessary to address systemic or macro - prudential risks. the application of these measures will, however, be subject to the procedures set out in the capital requirements directive ( crd iv ). as you may be aware, the crd iv will consist of a directive and a regulation. the legislative package is currently being finalised under the trilogue process and political agreement is expected to be reached soon. the directive includes instruments such as the counter - cyclical capital buffer, the systemic risk buffer and possibly also the capital surcharge for systemically important financial institutions as well as pillar ii measures. on the other hand, the macro - prudential toolkit defined in the regulation will probably contain large exposure limits, public disclosure requirements, liquidity requirements, risk weights for mortgage exposures, and intra financial sector exposures. the technical details of the implementation and the coordination mechanism among national authorities, the ssm and other eu bodies are still subject to discussions. bis central bankers ’ speeches conclusion the agreement by the council on 13 december on the ssm regulation is strongly welcomed by the ecb. the ecb looks forward to a swift conclusion of the trialogue with

sada reddy : development of e - money in fiji statement by mr sada reddy, governor of the reserve bank of fiji, at the launch of the digicel mobile money transfer services, suva, 15 july 2010. * * * executive management & staffs of the digicel fiji limited, members of the media, distinguished guests, ladies and gentlemen. today marks another achievement towards the development of e - money in fiji. i congratulate digicel and its partner flex pacific ( fiji ) for this remarkable achievement, having only entering fiji ’ s cellular phone market in late 2008. the launch of digicel money today is a testament to the people of fiji that digicel is committed to providing competitive services. today we have become a leading country in the pacific region to offer mobile money services, an achievement that the people of fiji should be proud of. mobile money is a quicker, easier and cheaper way of transferring money using mobile phone technology and network and customers will be able to use this service right away. however mobile money also has the capabilities to pay for bills and other goods and services and even has the potential to connect with banks and provide banking services to the unbanked. i believe that digicel has phased its mobile money project and this will become possible in the near future. mobile money service is important for fiji because it is estimated that about 50 percent of fiji ’ s population does not have easy access to financial services. the launching of digicel mobile money service would ensure bringing this number down to an acceptable level given its extensive network coverage. most of you may be aware that the reserve bank launched the “ e - money fiji project ” on 9th of june this year to support the development of mobile money in fiji. we have worked in close consultation and collaboration with the mobile network operators for the orderly and sustainable development of mobile money in fiji. following a provisional licence provided by the rbf early this year, digicel undertook their pilot test phase on mobile money services, which was assessed as successful. i am happy to say that digicel has met all the reserve bank requirements to gain approval for the full launch of digicel mobile money. having said this, i wish to emphasize that the product will only be as useful as its ability to have great penetration in fiji, particularly to the remote and maritime areas. likewise, that the people of fiji are able to witness and experience a reduction in costs for remitting funds domestically through this