Ladies and gentlemen, over the years, we have witnessed a process of change that has allowed many financial organisations worldwide to adopt more flexible structures whereby they have established a wide range of subsidiaries and affiliates that are engaged in business lines different from the core business of the parent financial institution. We have seen banking activities, asset management or insurance activities that previously were conducted on a stand-alone basis now being provided within one financial group. This trend  BIS Review 132/2009  1  has steadily gained momentum in the Eastern and Southern African financial sector. Some of these financial groups operate businesses across borders. The main economic and financial benefit which encourages the formation of such groups is the enhanced ability to achieve economies of scale and capture synergies across complementary financial services business lines. These synergies result in improved operational efficiency and effectiveness due to lower costs, reduced prices, and improved innovation in products and services. At the same time the emergence of such groups has brought complex linkages and relationships among economic agents. Consequently, they have also necessitated a paradigm shift in supervisory approaches in order to identify, manage and monitor risks. It is evident in our various jurisdictions that current legislation and regulatory tools are not adequate to effectively address the potential risks that threaten the safety and soundness of our respective financial sectors posed by activities emanating from such financial groups. Ladies and Gentlemen, I do not want to dwell much on what should be addressed by this seminar.
I am glad that MEFMI and the FSI are conducting this seminar on Consolidated Supervision for the region at a time that our region is also exploring these topical issues. It is my hope that this seminar will equip participants with relevant skills as senior examiners to develop appropriate policies for their jurisdictions with respect to Consolidated Supervision as well as prepare them for the daunting challenge of actually implementing Consolidated Supervision in our various jurisdictions. It is also my expectation that you will leave this forum after three days, with a new mindset and a renewed commitment to practice what you will have learned so that you could contribute to improving supervisory frameworks in our various countries. I trust that the seminar will also provide you with an opportunity to network and establish durable and valuable professional contacts within the region. I wish to take this opportunity, on behalf of the MEFMI board and indeed on my own behalf, to thank the FSI for their continued support to MEFMI activities over the years. As our cooperating partners, they have always shown willingness to go an extra mile in providing the necessary expertise that helps to sharpen our skills and groom the MEFMI Fellows on gratis terms. I have looked at the programme planned over the next three days. It has a comprehensive list of topics, which I believe will enable you to broaden and deepen your knowledge and skills.