(i) Issue an executive order to provide financial guarantee to the SBP in case of any losses that are not covered by SBP’s general reserves and recapitalize the bank if it becomes necessary; and (ii) delegate to the SBP board the power to establish profit distribution rules, allowing the board discretion in building reserves and prohibit
distribution of unrealized gains.
Introduced at R10. Rationale: Strengthen central bank independence. Met at R11.