The regulatory framework includes regulations imposed both for monetary policy as well as prudential purposes. Steps taken to stimulate competition are lowering the barriers to entry, abolishing interest rate ceilings, removing directed credit allocation, and privatizing government owned banks.
It is important that the management of a merged entity has the ability to identify the risks and to bed down the merger in the shortest possible time. Experience and skills The proposed management and directors should have the relevant banking experience and skills to conduct the proposed business.