The European Commission and the related Council working group have been working intensively on such a framework, including an alert mechanism on the basis of a limited set of macroeconomic indicators – similar to those I have just presented – which would initiate more detailed surveillance procedures.
These punitive measures and weeding out process have helped strengthen the overall health and soundness of financial system in Pakistan. Sixth, the role of internal corporate governance arrangements within financial institutions has been defined, reinforced and closely monitored.