abdul latif jameel poverty action lab ( j - pal ) at m. i. t, which runs field experiments aimed at measuring different ways to save the world. in 2009, j - pal won the bbva foundation “ frontier of knowledge ” award in the development cooperation category. bis central bankers ’ speeches 17. professor banerjee ’ s general research areas include economic development, information theory, theory of income distribution, and macroeconomics. 18. as you know, an economist ’ s caliber – particularly an academic one ’ s – is primarily judged by the quality of his publications ; and to date dr banerjee has published no less than 60 papers in the world ’ s leading economic journals. the important lesson from this volume of research is that it has focused on real world issues with real world solutions. his latest research is based on studying economic interventions on the basis of “ randomized controlled trials. ” the idea is simple enough – to compare groups of people with and without policy intervention over a period of time ; akin to the trials of new drugs. 19. in addition to his scholarly work, he has authored three books, including his recent one called “ poor economics ”, which has received the attention of scholars across the globe. and this is not the all ; he is an ex - president of the bureau for the research in the economic analysis of development, a research associate of the nber, a cepr research fellow, an international research fellow of the kiel institute, a fellow of the american academy of arts and sciences and the econometric society and has been a guggenheim fellow and an alfred p. sloan fellow. he has also been a recipient of the infosys prize 2009 in social sciences and economics. 20. dr. banerjee and his colleagues at j - pal have worked with a global network of researchers to conduct experiments in the poorest places of the world and have derived conclusions that are believed to have challenged economists ’ and policy makers ’ thoughts about impoverished areas. their findings have concluded beyond broad generalizations to show that the poor do not always act in ways that conform to the views and programs of wellmeaning relief agencies, revealing a portrait of poverty as complex as the movements of financial markets. 21. professor banerjee will be delivering his lecture today on the topic of “ micro - credit and financing of small business ”. needless to emphasize that it is an important topic, particularly when seen in the backdrop of the challenges faced

is trying to create its niche market in pursuit of establishing a sustainable revenue stream. in this regard, most companies are concentrating on financial advisory and other fee - based income segments. unfortunately, the sector is yet to capitalize on the huge opportunities offered by previously relatively untapped areas like smes, consumer, and agriculture segments to enhance avenues for fund deployment. third, the sector needs to develop and diversify sources of funding for sustainable growth. this would require a shift from the traditional sources such as commercial banks credit lines etc for on lending to clients. the nbfis need to develop capital market instruments to pool funds from a diverse set of investors to ensure certainty to the source and cost of funding. fourth, we need to strengthen the oversight and regulation of nbfis to reduce the risks emanating from “ shadow banking ”. as observed by fsb, the objective of this exercise should be to ensure that shadow banking is subject to appropriate oversight and regulation to address bank - like risks to financial stability emerging outside the regular banking system while not inhibiting sustainable non - bank financing models that do not pose such risks. 3 the measures articulated today adhere those very regulatory issues going forward. in conclusion, i would like to say that the financial system in pakistan is yet to grow to its full potential and play a more meaningful role in the economic development of the country. therefore, we definitely need to add to its diversification and depth. nbfis can play a meaningful role in this pursuit. in light of the global financial crises, we are better informed about the various risks that the nbfis / shadow banking carries with it. as regulators we need to remain vigilant to ensure that those risks are mitigated without inhibiting sustainable non - banking financing models. thank you. frb : speech, greenspan – do efficient financial markets mitigate crises? – october 19, 1999 fsb consultative document : strengthening oversight and regulation of shadow banking – an integrated overview of policy recommendations, 2012. bis central bankers ’ speeches