Ladies and gentleman Investors continue to show heightened confidence in the Zambian economy reflected in stronger performance in foreign direct investment (FDI). For instance, the 2013 Foreign Private Investment and Investor Perceptions Survey report shows that FDI inflows rose to $ billion in 2012 from $ billion in 2011, the highest in the past 12 years. Similarly, FDI stocks increased to US $ billion from $ billion over the same period. Data for the first two quarters of this year already indicate a strong performance in 2013. It is therefore, my expectation that the banking sector will continue to take advantage of opportunities arising from the conducive macroeconomic environment in the country to create wealth and contribute to the country’s development. We view increased private investment such as FCB as a stimulus for job creation, technological and skills transfer, as well as wealth creation. This investment by FCB is important given the fact that deposit-taking corporations (banks) have recently become among the top three sectors in the country with respect to FDI. FDI inflows to banks were $ million, third to manufacturing and mining at $ million and US $ million in 2012, respectively. Consistently, in terms of FDI stocks, banks were in third place with $ million while manufacturing and mining were second and first at $ billion and $ billion in 2012, respectively.
The new Law vests specific responsibilities in the SNB with respect to the oversight of payment and securities settlement systems. Up to now, our oversight of the SIC interbank payment system was based on a contractual relationship. As from next year, our responsibilities in this domain will be based on the Law and will extend to the oversight of all major payment and settlement systems. My colleague, Niklaus Blattner, will discuss this subject in more detail in his remarks. The new Law also provides that the SNB shall issue implementing regulations in the area of minimum reserves, statistics and the oversight of payment and settlement systems. The draft of an ordinance has already been submitted to the interested parties for consultation. In the field of minimum reserves and statistics we intend in principle to take up the provisions already existing in the Federal Law on Banks and Savings Banks and the Federal Law on Investment Funds. As regards the oversight of  BIS Review 58/2003  3  payment and settlement systems, we are advancing into totally new territory, where for the time being only the main principles have been defined. This implies pioneering work in the implementation. 4  BIS Review 58/2003