steps were taken to make the monetary policy more transparent. indicative monetary planning, rather than strict credit rationing that used to be practiced prior to 1992, is done under the aegis of national credit consultative council, which still makes the credit plan. intermediate monetary targets are set there consistent with ultimate goals of inflation and real gdp growth. interest rates were increasingly given more importance because of their superiority in signaling of monetary policy stance, yet within the framework of monetary and reserve money program. transparency was increased by issuing six - monthly statements on monetary policy. candid analytical reviews in sbp annual and quarterly reports, not only on the real economy, but sbp ’ s own monetary policy also added to increased transparency. recent release of monthly inflation monitor is also a step in this direction. at this juncture, when sbp has established itself as an independent central bank, with a sound banking sector, it needs to carefully review the international best practices of conducting monetary policy. in fact, many good practices are already in place ; my predecessor dr. yaqub institutionalized internal monetary policy operational consultative process by constituting a committee that drew senior members from the relevant departments under the chairmanship of deputy governor that met regularly. i enlarged the scope of the committee to coordinate both money market and foreign exchange operations in 2001. monetary and exchange rate policy committee meets bi - monthly, reviews the current economic situation together with emerging monetary and exchange rate trends, and forms a recommendation by majority and i then act by again taking views and evolving a consensus. the system is well structured, takes a lot of information systematically into account and can be termed as an eclectic approach to monetary policy implementation, which mishkin has sarcastically described as ‘ just do it strategy ’. nonetheless, system needs continued strengthening, especially when the fad of inflation targeting has spread quickly not only in advance countries, beginning with new zealand in 1990 and several developed countries during early to mid 1990s, but to several emerging market economies as well, which are not very different from pakistan in many of economic and social characteristics. inflation targeting seems to offer a lot of advantages, especially in terms of increasing transparency and credibility of a central bank. however, the evidence of superiority of inflation targeting over other alternatives is, at best, partial. cumulative experience of countries with inflation targeting is comparatively smaller than the historic experience of other regimes to conclude anything unambiguously. more importantly, monetary policy can not be formulated and implemented in isolation of government policies no matter how independent a central

##ilience of non - bank financial institutions and market - based finance. where macroprudential tools are not available, authorities may need to make use of their supervisory powers to mitigate the consequences of the materialisation of financial stability risks and ensure that markets do not become impaired. relevant authorities should also continue to monitor risks closely and enhance supervisory dialogue with supervised non - bank financial institutions where needed. [ - ] by ensuring that their risk management practices adequately reflect the deterioration in the risk environment and by heeding supervisors'guidance and expectations, non - bank financial institutions themselves can further strengthen their resilience and help prevent tail risk scenarios from materialising. for insurers, this means paying close attention to market and liquidity risks, which could materialise in a scenario of increased market volatility and high uncertainty. " ivass is carefully monitoring the heightened risks faced by the market as a whole as well as those borne by individual insurers. enhanced dialogue with supervised undertakings is in place, in line with both our long - standing supervisory approach and the above - mentioned esrb warning. as highlighted in my concluding statement to the 2021 ivass annual report, by ensuring that their risk management practices adequately reflect the risks they face, and by carefully heeding supervisors'guidance and expectations, insurers can further strengthen their resilience to exogenous shocks. they can thus help households and firms to absorb the impact of the current market turmoil and the italian economy at large to get back on track of long term, sustainable growth. 1 ignazio visco, considerazioni finali. 2 ibid. 4 / 4 bis - central bankers'speeches