As I understand, First Capital Bank has plans to increase its foot prints in Zambia and I hope that the bank will open up branches in other districts of BIS central bankers’ speeches  1  Zambia. This will enable it to enhance financial inclusion, which is among the country’s key priorities. Chairperson I have been informed that FCB has initiated the process of acquiring new state of the art banking software, and is in the process of introducing a full range of IT related products like internet banking, mobile banking and visa card. This demonstrates the bank’s strong and longterm commitment to becoming an important player in the development of our financial sector. This is no doubt driven by the confidence FCB has in the Zambian economy. Ladies and gentleman Zambia’s economy has continued to show resilience in the midst of a slowdown in the global economy as a result of the on-going Euro zone debt crisis and the sluggish growth in the United States of America and some leading emerging market countries including the BRICS. Economic performance has been strong with GDP growth in 2012 at 7.3%. Inflation has continued to be in single digits and was 6.9% in October this year. Although the exchange rate of the Kwacha against major international currencies has been under pressure, it has remained relatively stable, while the country has maintained a positive account balance over the last four years.
22  It is possible that families, or more accurately dynasties, can provide such insurance themselves through changes in the bequest which they make to their descendants: passing on a larger bequest if the current generation dies earlier than expected and a smaller bequest if it survives for longer than expected. But only a small proportion of bequests seems large enough to act as a buffer in this way. 23  As far as I am aware, the first instrument offering a return specifically to aggregate longevity was issued by Swiss Re, a large reinsurance company, in 2003. 24  To the extent that insurance companies offer both life insurance and annuities, they may be able partially to hedge the risks. 8  BIS Review 73/2004  There are two ways in which government involvement can, in principle, improve risksharing. First, collective schemes, whether compulsory or employer-based, avoid the costs of adverse selection associated with individual provision. Second, by combining taxes on current employees with deficit finance (i.e. taxes on future employees), statefunded pensions can transfer risks across generations in ways private markets cannot. Alternatively, the government could issue its own longevity bonds. Private annuity providers could use them to hedge aggregate longevity risk. By assuming longevity risk the government would make it possible for the private sector to purchase such bonds and in turn support a private market in annuities.