Recognizing the need to evolve an appropriate oversight policy mechanism for its evolving financial structure, SBP, as a part of its overall financial sector reforms launched in July 2008, has advocated the need for legislature to empower the central bank to augment its oversight of the financial sector.
In my remarks this morning I propose to outline the economic and financial benefits of financial conglomeration and the risk and supervisory challenges arising out of these complex financial structures. I propose to then share with you the legislative reforms launched by SBP in this area which have recently been approved, in principle, by the Cabinet and are to be tabled for Parliament consideration.