In a sense it is also much too early even to think about this question, given that the terms of the UK’s exit from the EU, and its future relationship with it, are still far from clear. And this will of course be a question for the Government and Parliament to settle when the time comes. However, in its own way Britain can be pretty stylish so I and colleagues at the Bank have been spending a little time thinking about this issue, in order to be ready to offer views when the time comes. We have begun, of course, with first principles. As I am a practical person I always approach first principles with a degree of caution, but nonetheless in principle at least it must be good to have principles. So here are a few, which I would argue should form the basis of any regulatory regime which aims to deliver safety and soundness and financial stability in a UK context: 2  All speeches are available online at www.bankofengland.co.uk/publications/Pages/speeches/default.aspx  2  1. Robust prudential standards. This one may be in the category of “so obvious why do you need to say it?” But I think it’s vital that this is stated as the first and most important feature of any credible framework for prudential regulation. The goal is to ensure continuity in the supply of vital financial services to the real economy throughout the cycle, including after severe shocks. All other principles should be subordinate to this one. 2.
Several years of debilitating external debt, regional political instability, and doubtful macroeconomic management have all played a role in keeping private capital flows away from our economies. However, with endurance, progress in the region generally and Zambia in particularly is certainly being recorded. A glimmer of hope is finally showing that we are once again being welcomed in the international capital market arena. As you are aware, the Government has over the years set out programs to reform the country’s political and economic platforms. Politically, Zambia has been one of the most stable democracies in Africa boasting peace since independence in 1964. On the economic front, Zambia has made respectable progress in the area of macroeconomic management. Over the recent past, the Zambian economy has performed relatively well. This is reflected in positive growth rates of real Gross Domestic Product (GDP), low inflation, relatively stable exchange rate, stable financial sector and improved banking services. In addition, Zambia’s access to the Highly Indebted Poor Country Initiative and the Multi-lateral Debt Relief Initiative resources drastically reduced the country’s onerous debt burden from around US $ 7 billion to below US $ 1 billion. The removal of the debt burden also made Zambia more attractive to foreign direct investment and capital flows, that have been an important source of investment financing. Furthermore, over the recent past, the growth in the real Gross Domestic Product (GDP) has remained positive and above 5% for the last six years.