to alter the incentives of businesses and investors, and change the accustomed rate and direction of flow of goods, services, labour and capital. the lesson here is that in this era of liberalization of capital flows, central banks have to be nimble and quick in their responses, less bound by theory and more by pragmatism in doing what is in the interest of the economy they serve. the pace of progress is in the direction of more openness to capital flows and the ability to adjust to this openness, will depend in part on the pace at which countries are able to strengthen the resilience of the domestic financial system and set in place the broader institutional framework, including real time information systems and regulatory regimes that are vital for open economies. in this regard, in almost every central bank in the world bank supervision departments are growing and new risk management techniques are being developed. higher reserves globalization of markets and greater openness has led to the holding of higher levels of foreign exchange reserves by most countries across the globe. indeed as cross - border transactions grow there is a worldwide trend towards higher levels of official reserves in most emerging markets. this is not simply the consequence of a desire for a greater financial cushion against external vulnerability, but reflects the increasing level of interaction of national economies with the regional and global economies. in addition many central banks are increasingly diversifying the currencies of their foreign reserves holdings. collective responses another global trend among regional groupings is a trend towards the establishment of regional foreign exchange pools. the 1997 the financial crisis in east asia was a wake - up call to governments of developing countries that financial markets and institutions must be sufficiently prepared to manage globalised capital flows, before there was full market liberalisation. specifically, in south east asia, financial institutions had to be reformed and restructured, capital markets broadened and deepened, and supervision and regulatory standards upgraded. most importantly the regional response that followed encouraged governments to consider establishing regional financial facilities in that region. as a result, the chang mai initiative by south east asian countries was established as a buffer which offered greater and quick foreign exchange access. today, a collective response drawing on that regional integration initiative would be possible as apposed to the individual country responses witnessed in 1997. this example of repositioning of south east asia is of significant import for central banks in other regional arrangements and other regional groupings are considering the establishment of such pools. at the same time, globalization and the reliance on the market and the decline in discretion

, are liable to pay corporation tax. we are seeking new opportunities to strengthen ibfs activities, with the exploration of new markets in latin america, africa, the middle east and elsewhere. we are also introducing new products and services geared to the needs of the various markets from which we draw our clients. this conference offers an opportunity to share ideas and information on how we may perfect our strategy and message. we will begin by looking into the future a bit, with a panel and discussion on the prospects of business with cuba, a country with which barbados has a long history of diplomatic and other relationships. we will also be discussing issues of the regulatory framework, and initiatives to strengthen institutional support and facilitation of the industry. our final presenter today will suggest ways forward for the wealth management industry. we live in an interconnected world in which the execution and financing of international commerce is open to competition to all nations, large and small. we can be assured of barbados ’ future as a player in this global market, so long as we strive always to offer a superior value proposition. i look forward to today ’ s discussions towards that objective. bis central bankers ’ speeches