For sure, if there is a lesson to be had from the crisis, it is that there is always a risk of another crisis; we cannot easily repeat the famous “this time is different” approach. But we are now better prepared. As a general approach, the main challenge is to fully implement the reforms and to closely monitor their impact on the financial sector, and if necessary, fine-tune them.  The interrelation between monetary and macroprudential policies. Under general circumstances, monetary policy and macroprudential policy complement each other. But, as shown by the run-up to the global financial crisis, there might be periods in which achieving monetary policy goals does not necessarily guarantee achieving macroprudential goals and vice versa; low interest rates had an influence on financial imbalances and excessive risk-taking while inflation was contained and the real economy did not show overheating pressures. This is a tradeoff which central banks will have to deal with. It would help to design an institutional set-up that ensures synergies and consistency among monetary, micro and macroprudential policies, but also separates ex-ante analysis, probably through Chinese wall-type structures. 5/6  3. The fintech challenge   “Fintech” is gradually entering into the financial sector. Information technologies can have important implications in terms of increasing competition and redefining the relationship between consumers and suppliers of financial services, fostering efficiency gains, better financial inclusion and improvements in quality through tailored services.
Caleb M Fundanga: Broadening access to mortgage financing in Zambia Opening speech by Dr Caleb M Fundanga, Governor of the Bank of Zambia, at the re-launch of the Pan African Building Society (PABS), Lusaka, 24 July 2007. *  *  *  • The Shareholders of PABS; • The Board of Directors of PABS; • Senior Government Officials present; • The Deputy Governor-Operations and Registrar of Banks and Financial Institutions; • The General Manager of PABS; • Distinguished Ladies and Gentlemen. It gives me great pleasure and gratitude for having been invited to speak on this occasion of the re-launch of the Pan African Building Society. Ladies and Gentlemen: Today marks an important day in the calendar of Pan African Building Society which brings on board new shareholders. The Bank of Zambia is happy to note that this development has turned around the financial condition of Pan African Building Society. Ladies and Gentlemen, as you are aware, there is shortage of housing in Zambia and therefore the demand for housing finance is increasing. It follows therefore, that the primary challenge of housing finance institutions in Zambia is the broadening of access to mortgage finance particularly to many people in urban areas. Due to the prevailing macro-economic stability that the country is experiencing, we have seen substantial growth in the housing finance industry in recent years. For instance, in the last four (4) years to December 2006, the mortgage portfolio of the building society industry has grown five fold.