Bank of Zambia (BOZ) Governor Caleb Fundanga says the global financial crisis is a clear demonstration that there are still critical deficiencies in risk management systems.
Dr. Fundanga cites the identification of key risks both within and across borders, the assessment of risks, including stress testing and macro-prudential analysis to determine the impact on the financial system as some of the areas requiring enhancements.
He said other areas in need of enhancements include monitoring, developing coordination protocols, reviewing the regulatory frameworks, adopting appropriate risk management frameworks and adopting international accounting standards.
Dr. Fundanga was speaking in Lusaka today when he officially opened a one-day regional seminar on Consolidated Supervision jointly organized by the Financial Sector Management Programme of the Macro-Economic and Financial Institute of Eastern and Southern Africa (MEFMI) and the Financial Stability Institute of the Bank for International Settlements.
The BOZ Governor said while the structural deficiencies were not new, the current crisis had brought them to the fore.
He said the speed at which the crisis has spread across the globe indicates that the development of coherent and rigorous frameworks for maintaining financial stability came too late for several countries, adding that this has lead to unplanned and inconsistent policy responses.
Dr. Fundanga said over the years, there has been a process of change that has allowed many financial organizations worldwide to adopt more flexible structures where they have established a wide range of subsidiaries and affiliates that are engaged in business lines different from the core business of the parent financial institution.
[ZANIS]
Global!! Global!!! Global!!! Global!!!!
The financial crisis was due to greed and casino type of gambling in financial circles. How do you stop that? Company bosses and managers were encouraged to take huge risks because of the bonus culture. Unless you stop that practice, banks will continue being put at huge risks by workers looking for big bonuses. There’s little that accountants and auditors can do about this. G20 Govts have failed to stop it. Even after the financial crisis and resultant global recession, banks continue to behave more or less in the same way.
Everything about the Global Crisis stinks. Everything. We have surrendered our freedoms. Allowed atrocities to be committed in our names and STILL we have not held ANYONE to account for all the lies.Is this really what we have become? A bunch of gutless slaves, who just love being lied to and having our money stolen from us?
Chapwa, what are you talking about? Pan Africanism?Â
I quotated Dr. Caleb Fundanga (BOZ) and then Finance Minister Nagndu Magenda at one of the discussion that the Global Financial Criss will not have any negative impact on our economy. These two gentlemen have never come forward to apologise for misleading the nation. The whole financial crisis was caused by the greediness of those crooks on Wall Street. Even now the trend has not stopped, inside trading/dealing. Just last week a group financers were arrested in New York. As Fidel Castrol Put it Capitalism has failed just like we got cheated on YK2000 that computers were going to collapse. The west should learn to be sober. In short there should an alternative to use of the US$. Let us revert to use of Gold Bullion as a measure of weath.