The extension of the list of eligible assets the Riksbank accepts as collateral has now been made permanent, which should mean that liquidity in the Swedish banking system is good. For a Swedish bank to choose to bear the cost of placing large surpluses in its deposit account at the Riksbank would assume that lending money on the interbank market was assessed to be a poorer alternative. One reason for this could be a fear that the bank wanting to borrow would not be able to repay in time, or at all. Another reason could be that the bank with a surplus was unwilling, or unable for some reason, to provide loans requiring capital cover in accordance with capital adequacy rules and therefore chose to deposit the money at no risk in the Riksbank. Normally, however, there would be very little risk of this happening - firstly, Swedish banks have good solidity and secondly they are so few in number that they have a good knowledge of one another. BIS Review 80/2001  3  The Riksbank also has the opportunity - in situations where the financial system faces a risk of serious disruption - to provide loans at special terms to a bank that for some reason experiences such unexpectedly large deficits in its payments during the course of a day that the bank is unable to offer sufficient already approved collateral to borrow from the Riksbank at normal terms. However, the condition is that the bank is considered by the Riksbank to be sound.
The Labuan IBFC's competitiveness will be further enhanced through a revision of the pricing structure pertaining to incorporation and maintenance fee charges. There will be an annual reviews and prices will be revised in response to competitive market developments. The Labuan IBFC will also leverage on the national strategy of the Malaysian Islamic Financial Centre by promoting Syariah-compliant trusts and foundation. These products will complement Islamic financial products and services already available in Kuala Lumpur. Efforts will also be taken to further develop Labuan's captive insurance business which has enjoyed commendable growth over the years. Conclusion Ladies and Gentlemen, The establishment of Labuan as an international offshore financial centre in 1990 was indeed a bold step in its time. We are now seeing the payoffs from this initiative. With the transformation of Labuan as an International Business and Financial Centre, our ambition will be taken further. The new name signals that Labuan is ready to take on the much broader and larger role. The new name also represents a commitment. A commitment for the future. To demonstrate this commitment, the Government and the regulators have put in place the supportive and enabling environment to promote a more connected and more cost effective environment. Continued initiatives will also be taken to remove any impediments and obstacles to a more efficient delivery system and to advance forward the Labuan IBFC. 2  BIS Review 10/2008  The responsibility for ensuring the ambitions of the Labuan IBFC to be realised, is however, a shared responsibility.