The reason most commonly cited for this trend is the need to better cope with the regulation of financial conglomerates. Our current architecture in Pakistan is not well suited for consolidated supervision. Some members of financial conglomerates are under-regulated and no agency has power to regulate financial groups as a whole.
At the centre of the case for reform in this area is the need for the SBP to regulate and supervise banking groups on a consolidated basis and to apply prudential norms to all aspects of the business of groups that include banks.