SBP for expanding work on resolution framework

KARACHI: Governor State Bank of Pakistan Ashraf Mahmood Wathra on Tuesday suggested the member countries of Regional Consultative Group (RCG) Asia to expand on the work done so far on resolution framework as well as financial safety nets in the region.
Speaking at the ninth meeting of Financial Stability Board-RCG Asia (FSB-RCG Asia) in Hong Kong, the governor said the initiatives will enable the member countries to exchange fruitful ideas in order to get critical insight on the issues pertaining to retrenchment of correspondent banking, wholesale market conduct, and deposit insurance.
During the meeting, the RCG Asia members discussed market-based financing and asset management activities along with associated risks. Members also deliberated upon the potential retrenchment of correspondent banking by large international banks in certain regions and for certain types of clients. Moreover, members also considered fair and effective wholesale market conduct, wherein the discussion focused on deficiencies in fixed income, currency, and commodity markets practices.
In July 2015, the SBP governor Wathra was appointed as the co-chair of FSB-RCG Asia along with Norman TL Chan of Hong Kong Monetary Authority for a two-year term.