The lack of proper tools is another reason for our low productivity. Given the oversupply of labour in our economy, we tend to be labour intensive in our industries. Our ratio of capital to labour is quite low. Unfortunately, this equates to low productivity. It does not necessarily be so. We can still have labour intensive industries but higher productivity.
Importance of capital in the banking business I would like to begin by offering some general thoughts about the importance of capital and its linkage to risks. From a regulatory perspective, capital is obviously an invaluable support for the safety and soundness of our banking system.