some of their earlier difficulties but continue to struggle. the effect on financial markets of the devastating attack on the world trade center was pronounced, as telecommunications and trading capacities were severely impaired. but the markets are mostly functioning normally now, and as in the past, the infrastructure will be rapidly restored. for a brief time, the terrorist attacks markedly disrupted payment transfers, leaving those counting on receiving payments caught short. those needs ultimately were met by the federal reserve, both through record lending at the discount window and through an extraordinary infusion of funds through open - market operations. to facilitate the channeling of dollar liquidity to foreign financial institutions operating in the united states, thirty - day currency swap lines were arranged with major central banks, again in record volumes. it was essential in such an environment to meet all appropriate demands for dollar liquidity. as repair of the financial markets and payment infrastructure proceeded apace, loans were repaid, open - market operations could be scaled back, the unusual swap lines were allowed to expire, and the temporarily bloated balance sheet of the federal reserve largely returned to normal. but even as market functioning and liquidity flows were restored, the potential for heightened uncertainty to damp household and business spending for a time persisted. to cushion these effects, we have eased the stance of monetary policy appreciably since september 11. * * * we in the united states have assumed ourselves to be fairly well - insulated from terrorism or, at most, subject to limited and sporadic episodes similar to those previously observed on a number of occasions in europe. we have been aware of the possibility for losses on a much greater scale. but i suspect that those possibilities were deemed so remote that they were never seriously incorporated into most conventional assessments of economic risk. the shock of the tragedies at the world trade center and the pentagon has reshaped those assessments of risk and required an abrupt realignment of prices in many markets to reflect the expected costs of operating in what we now recognize as a more hostile world. these circumstances pose a difficult challenge for business decisionmaking, not so much because the costs are inordinately large, but because the events, which have potentially substantial consequences, are so uncertain. insurance deals with this problem by spreading the risk and converting potential large unknown costs into a steady stream of known insurance premiums that facilitates the forward planning so essential to an effective business operation. obviously, sharp increases in insurance premiums for all forms of businesses are to be expected. some higher

entrepreneurs who are financially excluded. access to improved financial services, through the provision of better ways of accumulating savings and access to credit to augment accumulated savings, avails funds for investment in income generating projects that help the public to lay foundation for better standards of living for themselves and their families. madam managing director, as your bank introduces these products on the market, please ensure that the pricing aspect is also critically looked at. many a time a good product is introduced on the market yet it is out of reach of ordinary citizens due to the costs associated with the products. consumers of these products expect an affordable service if indeed these are new and innovative products. banks need to show more commitment to the growth and development of the country by encouraging more zambians to open bank accounts through provision of easily accessible and affordable products and services. as i end my remarks, i want to remind all players in the financial sector that some of the challenges we face in our country today can indeed be mitigated by all stakeholders playing their respective roles. in particular, we have seen food prices increasing dramatically in the past few months. this is despite zambia possess vast arable land, relatively good weather and plenty of fresh water. further, zambia is predominantly an agricultural country, but lending to agriculture has been limited. the challenge therefore is to devise financial products that meet the requirements of the sector while at the same time devise means of protecting the financial institutions from the risks associated with lending to the agricultural sector. a vibrant agriculture sector will no doubt lead to a vibrant economy less dependent on the mining sector. i hope that standard chartered bank will lead the way in establishing affordable products and services for our small scale farmers throughout our country. i encourage you madam managing director in your capacity as the deputy chairperson of the bankers association of zambia to expand your horizon and collectively join hands with all stakeholders in addressing this problem. i thank you for your attention.