This includes measures limiting bank holdings of excessively risky assets, preventing lending to related parties, requiring diversification and making that banks have appropriate loan appraisal, documentation, follow up and classification procedures. Along with the issues of harmonization of market structure and regulatory environment in the SAARC Region there is another issue that impinges upon the efficient functioning of financial sector i.e.
*** As we are limiting the assessment to the euro area’s major banks, meaning that few of you here today are directly affected, I’ll spare you the technical details of the comprehensive assessment for now. The key factor is that it is creating transparency, is credible and is restoring trust in European banks.