I would like to think that the financial system is simply a conduit for real economic activity. Up to now I think that the Asian and particularly the Pacific financial markets are somewhat insulated from these developments and thank God for that. But this may not be true anymore. Most of our commercial banks are branches of Australian and New Zealand banks.
A few weeks ago, the Reserve Bank of New Zealand had to make a public statement reassuring the people that its financial markets are safe and sound. While we will need to talk more with the commercial banks in Fiji, I agree with Governor Bollard that the financial markets in the Pacific are safe and sound.