when we are really in trouble. the financial sector, on the other hand, is in a crisis. a combination of external problems and self - inflicted plagues has landed the financial sector in a situation where financial stability is at risk. looking ahead, when we discuss how to avoid a repetition of this untenable situation, it is important to remember what caused it. not least the banks'deposit deficits have made it necessary for the central government to step in and guarantee deposits and loans to the tune of kr. 4, 200 billion. the business model increasingly applied by banks since the millennium rollover is not viable in its present form. the crisis will affect the future structure and regulation of the financial sector. it is yet too early to draw detailed conclusions, the causes must be analysed first. however, there is no doubt that the capital - to - risk requirements imposed on the financial institutions will be tightened. new transparency requirements will be imposed on financial institutions, and liquidity management will, undoubtedly, also be tightened in the future. and these requirements will not be voluntary. the weaknesses in the system will not simply pass over. we need to do something about the underlying factors that have landed us in this pickle! at danmarks nationalbank we will consider how we can contribute better to strengthening financial stability in future. in this respect, we believe that we must work more closely with the danish financial supervisory authority, so that we together gain optimum insight into the risks of the banks and address weaknesses in a timely manner. we need to go on the offensive. in my opinion, the last six months have disclosed a need for more direct regulatory control of banking activities. in the very short term a new banking package is being discussed, which is to inject new capital into the banking sector. the background is concerns as to whether the banks are currently able to fulfil their necessary role in society as intermediaries between savers and creditworthy borrowers. so far, the central government's guarantee for all deposits with and unsecured claims against the banks has created a good foundation for the banks once again to obtain financing in the national and international financial markets. however, what started off mainly as a liquidity crisis could turn into a genuine credit crisis. the turmoil in the international financial markets will make it all but impossible for many banks to attract new capital. at the same time, there are many indications that danish banks will need extra capital in the near future,

were conducted of external stakeholders. the results of these surveys were combined with a global scan of central banking issues and domestic and global economic and financial developments. our aim is for sbp to be a role model for corporate best practices in pakistan and to deliver effective and efficient outcomes at every level. we need to empower all staff members to help deliver sbp vision 2020 and drive the organization ’ s change. in this respect, our core values of integrity, accountability, teamwork, courage, excellence and result orientation shall be the focus for further inculcation into the sbp culture. sbp vision 2020 organizes activities around the six strategic imperatives which include : enhancing the effectiveness of monetary policy ; strengthening the financial system stability regime ; improving the efficiency, effectiveness, and fairness of the banking system ; increasing financial inclusion ; developing modern and robust payments systems ; and strengthening sbp ’ s organizational efficiency and effectiveness. bis central bankers ’ speeches around 50 percent of pakistan ’ s adult population has no access to financial services such as formal savings, payments, deposits, credit or insurance. despite efforts, the level of financial inclusion has remained very low, and the need for a new comprehensive national strategy has been recognized. following extensive development and consultation, the national financial inclusion strategy was launched in may 2015. sbp vision 2020 with respect to increasing financial inclusion is closely linked to implementation of the nfis. the nfis creates the foundation for sbp, the government and private sector to implement a comprehensive set of coherent and sequenced reforms needed to make a meaningful impact on financial inclusion in pakistan. the nfis will guide efforts to promote financial inclusion over the coming five years. apart from its core functions, the sbp is playing an important in preserving the cultural heritage of the country. in this regard, state bank museum and art gallery has a prominent role. in a very short span of time the state bank museum has become the member of international forums such as international council of museums and commonwealth association of museums. as an ongoing drive state bank has taken another pioneering initiative by inviting private collectors to be part of sbp museum, by donating or selling their collections, which will be preserved professionally under an ideal environment, not only this but depending on the size and type of the collection, sbp museum will reserve a corner, or show space in the name of the donor. i am very pleased to see the positive response of the citizens and collectors. i am pleased to welcome pakistan ’ s renowned artist mr