of the institutions on an ongoing basis. similarly, the misaligned incentives and the remuneration of directors and executives of banks and financial institutions also came under scrutiny in the post - crisis reforms. this led to growing efforts for rationalization of compensation practices in the financial sector, with a focus on medium to longer term goals to avoid undue risk - taking and promoting transparency and meeting proper disclosure requirements. though corporate governance is important for every institution and business, i consider it more critical for the banks as they are the custodians of household and business sector deposits and their intermediary role is only possible when the society has full confidence in its banking system. and, this is where the role of the central bank and other regulators of the financial system comes in. the corporate governance revolves around three basic principles of fairness, transparency and accountability. sbp has been on the forefront in promoting sound corporate governance practices and fair competition in the banking sector by introducing various reforms and prudential regulations. the sbp has implemented a comprehensive corporate governance regime for the banks, which is supported by a robust legal and regulatory framework, riskbased supervision and detailed banking sector reforms, notably, privatization, liberalization and consolidation of banks. the measures taken by sbp have enabled the corporate governance regime for banks and its different elements are not only compatible with international best principles but are also parallel with most other emerging economies. central banks are vital in instilling confidence in the economy. they are key towards the promotion of trust and confidence in the financial sector. interested groups on the other hand may attempt to disrupt the regulatory framework and in turn confidence in the institution. accordingly, we must provide constant reassurance to the public of the confidence in the central bank. cognizant of the international regulatory developments, the sbp regularly reviews the international regulatory standards and best practices issued by the financial stability board ( fsb ), bank for international settlements ( bis ) and other multilateral agencies and standard setting bodies and assesses them for their possible implementation in its banking system. the sbp ’ s regulatory approach towards promoting and strengthening of corporate governance has been successful in inducing a positive change in the corporate governance bis central bankers ’ speeches culture in the banking sector that has transformed them into healthy and profitable financial institutions. it also positively impacted the solvency profile of the banking system, that has enhanced their market value and attracted substantial foreign investment in the banking sector during the 2004 – 2009 period. i am pleased to state

grievance mechanisms. besides, customers also desire proper handling and maintenance of their accounts, and privacy of their personal financial information. for cost effective and quick redressal, sbp has issued necessary guidelines to the banks regarding complaint handling along with institutionalization of the banking mohtasib pakistan. the state bank has also taken considerable interest in enhancing the capacity of its own human resource as well as that of the banking sector that is an important element for ensuring the effective implementation of the regulatory requirements. sbp through its subsidiary, nibaf, is providing world class training and arranging specialized courses in banking, economics and finance. further, sbp also encourages its employees to gain international certifications like the cfa, to boost their professional capacity. i am confident that the steps taken by the sbp to promote financial literacy and inclusion and capacity building of the banking sector professionals will be highly useful in creating a professional, sound and vibrant financial culture. similarly, the regulations to promote corporate governance are also expected to promote corporate ethics in the banking sector. it bis central bankers ’ speeches is now up to the young generation – like many of you to improve the skill - set and take keen interest in striving for excellence and maintaining professionalism. the state bank looks forward to working with you and the whole community towards achieving our shared goals of economic growth and social prosperity. thank you. bis central bankers ’ speeches