Those who meet this test can hold the office for the prescribed tenure but in case there is deviation and the appointees do not meet the test the SBP advises the banks to replace the individuals concerned by more appropriate persons.
On the other hand, the banks are also repaying the loans from the ECB with funds obtained through the deleveraging of their balance sheets – that is the bad news. That in turn restricts their scope for extending credit. ECB President Mario Draghi described the promise of low interest rates for an extended period of time as “unprecedented”.