SBP is working towards developing adequate policy framework for consumer protection, development of Financial Safety Nets such as Deposit Insurance and a well-laid out “Lender of Last Resort” procedure to strike a balance between enhancing consumer protection and minimizing moral hazard. At the same time, there is need to encourage efficiency of financial intermediation by reducing banking spreads.
SBP is further developing capacities to monitor operational risks associated with weak internal control systems, delays in adoption of information technology solutions and outsourcing of processes by banks. BIS Review 56/2008  5