Although this trend is impressive, much more needs to be done in order for the sector to meaningfully contribute to the growth of the country’s economy. Provision of finance to the SMEs can be a leading conduit for transforming our economy by opening up business opportunities as well as channelling resources more efficiently and effectively to the sectors that require it the most. BIS central bankers’ speeches  1  Distinguished Guests, To see a commercial bank bring its services to the heart of the informal sector is an encouraging sign not only to the Bank of Zambia but to the entrepreneurs of Soweto Market as it demonstrates the confidence that the Bank has entrusted in the SME sector. It is also our hope that the perception of banks being intimidating to the informal sector will be a thing of the past thus alleviating the challenges faced by SMEs in accessing finance. Furthermore, by partnering with the local entrepreneurs in Soweto Market which is the biggest market in Zambia, Stanbic Bank is encouraging a culture of banking for a myriad of Micro small and medium entrepreneurs. Because of the key role that SME sector plays in the economy, the Bank of Zambia will ensure that financial institutions are fully responsive to the unique characteristics of this sector. The Bank of Zambia attaches great importance to initiatives that seek to enhance the provision of financial services to the underserved sectors of the economy. The opening of this Branch today is a demonstration of this important objective.
In fact, it’s been more than 15 years since the Basel II capital accord included a capital charge for operational risk. 2/6  15 years later, I believe we can draw two conclusions. First, measuring these risks is still challenging. Second, their importance for the banking business has not diminished a bit. On the contrary, it has become more relevant for banks and, certainly, supervisors. Indeed, looking at the 2020 priorities, released by supervisors worldwide, it is clear that nonfinancial risks are on the top of the list. Let me give you a few illustrative examples: the importance of IT has soared, since it has become a key component of any viable Business Model, which makes cyber risk an even greater source of concern. Second, considering recent scandals across the EU I believe I don´t need to emphasize that Anti-MoneyLaundering is more relevant than ever. Finally, it is also clear that the nature of retail banking business means that conduct risk is a major source of concern. In this regard, it is not easy to compile all the losses stemming from the wave of fines and lawsuits that has swept through the financial industry during the crisis and its aftermath. According to a report from the ESRB1, the cumulative losses to December 2014 stemming solely from misconduct exceeded 200 bn € worldwide, with more than 50 bn € affecting EU banks. But, despite the size of these losses, the direct financial consequences are not the only source of concern.