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The financial sector in Pakistan is too bank-centered and there is a need to develop other financial intermediaries and markets.

The development of non-bank financing will require a combination of official policies, market competition and business opportunities. Non-bank financial intermediaries have substantial growth potential. The equity market has provided little new corporate financing in recent years. The equity market has tremendous scope to grow. Private debt securities have the biggest growth potential. The basic structures for issuing and trading private securities already exist but need to be updated and strengthened. Government financing in the domestic debt market and through NSS needs to be reviewed. The above reforms in the broader financial system require actions by the SECP and GOP.

Infrastructure under control of SBP The wholesale payment system is being upgraded and renewed. The retail payment system is next in line to be modernized. The electronic Credit Information Bureau.

The human resource base needs to be developed to meet the needs of an expanded financial system. SBP is planning to take some initiatives to support a broadly based effort to train financial sector professionals. Credit rating agencies need to be promoted. Land and property registries need modernization. The judicial system needs reform for the efficient functioning of the financial system.

The global capital market is defined as the cumulative collection of markets where global capital supply is matched by global capital demand. McKinsey sums together bank deposits the market value of publicly traded equities, and the outstanding face value of debt securities. The data base covers more than 100 countries. Debt securities divided into private and government. The database includes GDP data for each country to allow calculation of the value of financial assets. The definition does not include the value of real estate or other illiquid assets.

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To incorporate spirit of Basel Core Principles. Structured process for resolution of troubled banks. Framework for Payments System and e-banking. Enforcement powers to check illegal banking and deposit taking. SBPs powers to issue prudential regulation. Islamic Banking. Entry and Exit - banking business Ownership & management reforms. Prohibited & permissible businesses Supervisory powers of SBP Judicial challenges to SBP Outdated/ non-functional provisions of BCO Fit and proper criteria

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Anti-money laundering. Inspection, audit and reporting. Deposit protection fund. Cooperation between SBP and SECP Regulatory powers of SBP

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