it runs counter to the idea of a single market and fosters regulatory arbitrage ; and it violates the principle of same business, same risks, same rules. every day we supervisors struggle to maintain the equal treatment of banks that have to comply with different rules even though these differences are not justified by national specificities with regard to risks. that said, where we do have scope to act, we have made use of it. we have, for instance, agreed to exercise options and discretions contained in european law in a harmonised manner. this was a huge step, but more could be done. that, however, is up to the legislators. and there are indeed a few areas where further harmonisation would help the single market to progress : the fit and proper assessments of banks ’ board members, the liquidation of banks, large exposures and the supervision of branches of non - eu banks. now, don ’ t get me wrong : what has been achieved so far is truly remarkable. no large reform project has ever been perfect from the start, so it is only natural that more remains to be done. and it is worth putting our achievements into perspective. a lot has been done in a short time. the banking union is a project that is unprecedented in scope and scale. just look at its first pillar, european banking supervision. it involves 26 authorities from 19 countries plus the ecb. this sometimes prompts questions about how efficient it can really be. did we, in the end, just build a huge and overly complex bureaucratic machine? well, i ’ m not giving away any secrets if i tell you that it is kind of complex. and to countries that are thinking about joining the banking union through close cooperation agreements, it might look even more complicated. 3 / 7 bis central bankers'speeches in order to take a decision, we have to follow a finely balanced procedure. one of the reasons is that two bodies are involved which have to interact in a careful manner. the first one is the ecb ’ s supervisory board, which brings together the ecb and all the national supervisors. the second body is the ecb ’ s governing council ; it brings together all the national central banks and acts as the ultimate decision - making body. while both bodies play a role when it comes to taking decisions, they are, at the same time, subject to what is known as the separation principle. this principle was put in place to deal with potential conflicts of interest between monetary policy

corrupt practices. ladies and gentlemen, a strong regulator is needed to act as a vigilant watchdog on the banks and banking industry as a whole. you would be delighted to know that sbp has also been maintaining a centralized database with multiple objectives of cross - matching the antecedents of persons being appointed on key positions in banks / dfis as per the requirement under its fit & proper test ( fpt ) criteria. such cross - matching at hiring stage may ensure the entry and presence of professionals with highest integrity and ethical standards in the banking industry. the database almost contains 5000 records of persons terminated / dismissed from banks / dfis on various charges. in my view, 50 percent of the job of the regulator is completed if the right persons are appointed and the corporate governance guidelines are observed in letter and spirit. with such grid of human resources, we foresee a high comfort level to manage the common irregularities, procedural lapses and financial scams in the banking industry. on the other hand prudential regulations and their effective enforcement is one of the vital instruments which help regulator to keep a discipline in financial dealings. these regulations have a significant long lasting impact to safeguard the interest of depositors, ensuring prudence in lending and eradication of unlawful banking practices. ensuring complete compliance of these prudent standards, a strong oversight of functions is inevitable from boards of directors, chief executives and senior management of the banks. state bank of pakistan is comfortable with its cooperation with nab that has strengthened over a period of time. this has also been instrumental in gradually weeding out the irregularities from the banking system, hence facilitated smooth functioning of the banking system. looking to professional zeal, exhibited commitment and deliberations on the subject in this seminar, i am hopeful that the cooperation among sbp, nab & the banking sector would further strengthen and go a long way to combat corruption from the banking industry and the society at large. while the nab is performing its role quite satisfactorily and enjoying the confidence of banking industry i would like to see nab on its way ahead as an organization with indigenous strength of technical staff fully equipped to investigate financial crimes, forensic investigation, having international collaboration with key investigating agencies. i am also confident that nab on its part shall continue to retain the confidence of the banking sector built over the years and achieved through quality, integrity and professionalism of investigator. at the end, i congratulate nab for conducting such a successful