The enforcement actions that can be taken by SBP range from imposition of pecuniary penalties to removal of management, board of directors and cancellation of banking license. The results of stringent enforcement actions taken have been encouraging as majority of the banks have displayed extraordinary operational performance over the past five years. IV.
Emerging challenges and Issues  The increasing growth and complexity in banking sector have now given rise to new issues and challenges. While initially preoccupied with their own primary business of banking, the banks have now cross ownership where industrial and brokerage companies own banks and banks own subsidiaries and associate companies that handle asset management, brokerage, insurance, housing and telecommunications businesses.