There are in particular five areas of concern that should be addressed to strengthen the institutional framework for the financial sector: •  Risk management of banks: Both bank management and supervisors will have to play a more active role in scrutinising risk management practices (internal checks and balances, clear lines of responsibilities, etc.
Banking is plagued by inherent instability. The banking sector functions as a closely inter-linked system, which is prone to contagion risks through the payment system and the interbank markets. Central banks, as issuer of money, need, like any other sound managed financial institution, to monitor the quality of their counterparts.