For financial sector stability, it is critical that such institutions be better capitalized and a conducive environment is created for the growth of promising segments (collective investment schemes, including mutual funds), niche markets and products are introduced for leasing companies, modarabas, housing finance and venture capital, and penetration is enhanced in the insurance industry.
It is also important to consider that while market capitalization has grown impressively, its role in raising long term risk capital or debt for new industry over the last several years has been limited. 22. There is further scope for enhancing banking sector stability too.