Secondly, even accepting that there will probably be some effect of the reforms in lowering growth over some period of time, relative to baseline, we have to remember that there is a potential benefit on offer too: a global financial system that is more stable and therefore less likely to be a source of adverse shocks to the global economy in the future.
SBP desires a more active role of the Board in setting the strategic direction of a bank as well as to bring them under accountability. The formulation of policies relating to risk management only would not solve the purpose unless these were clear and effectively communicated down the line.