It also enables the regulator to focus supervisory attention on the areas and institutions that pose the greatest risk to financial system stability. BIS Review 159/2008  1  Thus, the supervisory authorities are in a position to identify systemic risk factors and devise intervention measures aimed at forestalling systemic failures. The added advantage of this approach is that it brings about optimal utilisation of supervisory resources. Ladies and Gentlemen, I am happy to inform you that following our initial efforts dating back to 1999 to introduce risk based supervision, the Bank of Zambia has this year fully adopted RBS. As a result it is expected that there will be enhanced supervision of banks and other financial institutions. Let me also state that the BoZ is committed to implementing the Basel II Capital Accord but stands ready to review this stance in the face of the ongoing global financial crisis. As you know Basel II is intended to make banks operate at capital levels which are commensurate with their risk profiles. To this end, the BoZ just issued risk management guidelines. Distinguished Workshop Participants As I conclude, I wish to urge the workshop participants to participate actively in the deliberations and use this opportunity to tap knowledge and skills from the vast experience of the resource persons. This workshop provides us with a unique opportunity to share our respective country experiences and challenges.
It is my hope that we will develop the supervisory systems in the region to a level where they will be able to interact effectively. This uniformity in the supervisory systems will prepare us to respond better to regional and global financial challenges. With these few remarks, Ladies and Gentlemen, it is now my honour and privilege to declare this important regional workshop on Effective Banking Supervision: A Risk Based Approach officially open. I thank you!!! 2  BIS Review 159/2008