The regulatory agenda can be broadly divided into the following areas: •  Strengthening of the prudential regulation of solvency and liquidity  •  Improving the institutional basis for supervision and crisis management  •  Introduction of macro-prudential instruments to prevent systemic risks in the banking system and financial markets  •  Regulating the structure of the banking sector  The structural reform proposals which appear as the last item on this list aim to separate the riskiest securities and derivatives business from the deposit banking activities.
In order to facilitate the FHC model, we are also seeking several amendments in the BCO covering its definition, licensing and supervision (which will be by SBP), capital requirement and various other aspects. In anticipation of these legal changes, SBP is also preparing supportive regulations to aid the effective development of financial conglomeration and their oversight.