A second very practical concern is that, in most jurisdictions, the prudential authorities do not have the power to use prudential instruments in the way recommended. Acquiring such rights would probably involve a long and difficult political process. Consider, for example, the strong opposition already being mounted by the accounting profession and the tax authorities to the idea of forward-looking provisioning for expected losses.
Extending this initiative to the National Insurance, a major issuer of cheques, should result in further efficiency in the financial system. It is envisaged also that facilitating electronic transfers to government for the payment of taxes and fees will enhance efficiency and productivity within both the public and private sectors.