KARACHI: State Bank of Pakistan (SBP) Deputy Governor Riaz Riazuddin said on Tuesday that risks to stability of the financial sector should be managed for maintaining uninterrupted availability of services, raising investors’ confidence and enhancing outreach.

Addressing a seminar on financial stability organised by the SBP under the auspices of the SAARCFINANCE Forum at the National Institute of Banking and Finance (NIBAF), Mr Riazuddin stressed upon the need for putting in place an effective financial stability framework and enhancing the cross-border supervisory cooperation.

The SAARCFINANCE is a network of central bank governors and finance secretaries of the Saarc region established to share experiences on macroeconomic policy. Its member-countries include Pakistan, India, Bangladesh, Sri Lanka, Bhutan, Maldives, Nepal and Afghanistan.

The seminar was attended by around 40 mid-to-senior level officials from five central banks of Saarc member-countries and the Securities and Exchange Commission of Pakistan (SECP). Local and foreign financial sector experts from Pakistan, multilateral agency and foreign banks shared views on different topics.

SBP Executive Director Jameel Ahmad provided an overview of the international regulatory reforms post-global financial crisis (GFC) followed by a detailed account of measures taken by the SBP for strengthening the financial stability framework in Pakistan.

Gabi Afram of the World Bank Group explained the importance of having a well-established institutional framework for bank resolution and crisis management. SECP Executive Director Usman Hayat shared his experiences in handling past capital market shocks and the measures being adopted for managing the risks associated with the equities markets.

The seminar focused on the market perspective of financial stability. Felicity Macdonald, senior manager for resolution planning at the UK Standard Chartered Bank, shared her perspective on the topic at hand in the context of the United Kingdom. National Bank of Pakistan Group Chief Faraz Haider presented the perspectives of domestic market participants on financial stability.

Published in Dawn, March 29th, 2017