This illustrates that the Dutch economy has acquired a kind of boom-bust character, which indicates a more volatile cyclical growth pattern. Another indication is given by the rise in the standard deviation of growth rates. This measure of volatility has almost doubled over the last four years, compared to the four years before.
Given the intricacies of adopting a capital standard in Mauritius, a consultative and participative approach has been adopted with banks. The Committee for the Implementation of Basel II was therefore established to act as a steering committee for implementing the new capital adequacy framework. This is rightly an occasion for me to reiterate some reflections I always share with fellow students.