In this regard, a common resolution regime will have to ensure that banks without a viable business model can exit the market in an orderly fashion. Such a regime is crucial not only for financial stability, but for sustainable growth as well. A functioning resolution regime strengthens incentives for effective credit monitoring and moderates banks’ risk appetites.
Allow me to quote from Quaid-e-Azam Muhammad Ali Jinnah’s famous address at the inauguration of Pakistan Constituent Assembly on 14th August 1947 at Karachi; “It will be our constant endeavor to work for the welfare and wellbeing of all the communities in Pakistan, and I hope that everyone would be inspired by the idea of public service, and they will be imbued with the spirit of co-operation and will excel in their political and civic virtues which go to make a great nation and help to advance its greatness.” These words reflect the statesmanship, wisdom and vision of our great Quaid, under whose inspiring leadership, the first ideological state of the world came into being.