* * *  Salutations AFI Executive Director, Dr Alfred Hannig AFI Colleagues Joint Learning Programme Speakers and Participants Ladies and Gentlemen  Introductory Comments Ni sa bula vinaka and warm greetings from the Reserve Bank of Fiji (RBF).
Market discipline is effective because, normally, the creditors of private firms have powerful incentives to monitor the risk-taking and risk-management activities conducted by these organizations. In particular, if creditors believe that an organization is taking on increased risk, they will reduce their exposure to the organization or demand greater compensation for bearing the additional risk.