Commensurate with the diversity and complexity of takaful operational framework, products and services, the continuous upgrading of risk management practices, with improvements in governance standards and enhancements of information management systems will be critical. Under this environment, it is envisaged that takaful operators, individually or collectively, will play a bigger role in enhancing risk management practices, developing market conduct standards, fostering fair market practices and improving financial literacy among consumers. This will be even more important with the implementation of the risk-based regulatory regime, whereby the responsibility for the implementation of sound risk management and market conduct governance, as well as assessment of risks and management of the financial condition of a takaful operator, will rest increasingly with the Board of Directors and Senior Management of the takaful operators. Moving forward, a differentiated regulatory approach will increasingly be adopted, where companies that exhibit strong corporate governance and risk management practices will be given greater regulatory flexibility and may enjoy greater capital savings. Secondly, it is vital to have in place an efficient and cost-effective delivery channel for the takaful business, strategically aligned to fulfil the participants' reasonable expectation. BIS Review 84/2006  1  Bancatakaful strikes as an attractive value proposition that enables takaful operators to tap into banking institutions' large customer base and attract the existing clientele of the latter to have access to integrated financial service offerings in the most cost effective manner. Strategic alliance in the bancatakaful arrangement has indeed shown a significant improvement in the takaful contributions over the past few years.

Stockholms Banco was an imitation of foreign commercial banks and the idea was originally that it would be a private company. But instead it became a state-owned institution that was managed by officials appointed by the Government. The fact that it went bankrupt created scepticism regarding this type of operation, but there was nevertheless general agreement that a bank was needed. With the bank crisis fresh in their memories, the Government handed over to the estates of the realm at the 1668 parliament the task of deciding how banking operations could be maintained and strengthened. At the request of the four estates, the Government provided “an assurance…. on certain terms and advantages to the Bank’s best”. This meant that all legislatory and regulatory power regarding the bank, as well as its management, was handed over to the estates. The Riksbank’s relationship to the political system has changed quite substantially over the course of the years. Different parts of the political system, the King, the Riksdag and the Government have all at various times wanted to gain control over the central bank. One telling example is the period around the mid-18th century. The so-called "Hat party” came to power in 1738-1739 and began to conduct a very expansionary economic policy. The Bank then became – in its capacity as the bank to the general government and the cash-office for the public authorities – a tool for business subsidies and, not least, the funding of a war which was a total failure.