On one hand, SBP has used differential and concessional cash reserve requirement (half of the level applicable to deposits below 6 months) for term deposits above 6 months. On the other hand, SBP is using moral suasion to encourage banks to offer different products which offer better returns to depositors.
Improved efficiency in financial intermediation process and a shift to long dated deposits will augur well for sustainability of banking system. The latter should also help reduce the inherent asset-liability mismatches as the proportion of longer maturity deposits rises and encourages banks to lend long.