Tuesday 20 September 2011

bank

State Bank of Pakistan


The State Bank of Pakistan (SBP) (بینک دولت پاکستان) is the central bank of Pakistan. While its constitution, as originally laid down in the State Bank of Pakistan Order 1948, remained basically unchanged until January 1, 1974, when the bank was nationalized, the scope of its functions was considerably enlarged. The State Bank of Pakistan Act 1956, with subsequent amendments, forms the basis of its operations today. The headquarters are located in the financial capital of Pakistan,Karachi with its second headquarters in the capital, Islamabad.
















Before independence on 14 August 1947, during British colonial regime the Reserve Bank of India was the central bank for both India and Pakistan. On 30 December 1948 the British Government's commission distributed the Reserve Bank of India's reserves between Pakistan and India -30 percent (750 M gold) for Pakistan and 70 percent for India.








Under the State Bank of Pakistan Order 1948, the state bank of Pakistan was charged with the duty to "regulate the issue of bank notes and keeping of reserves with a view to securing monetary stability in Pakistan and generally to operate the currency and credit system of the country to its advantage".








A large section of the state bank's duties were widened when the State Bank of Pakistan Act 1956 was introduced. It required the state bank to "regulate the monetary and credit system of Pakistan and to foster its growth in the best national interest with a view to securing monetary stability and fuller utilisation of the country’s productive resources". In February 1994, the State Bank was given full autonomy, during the financial sector reforms.











The amendments to the Banks Nationalization Act  brought the end of the Pakistan Banking Council (an institution established to look after the affairs of NCBs) and allowed the jobs of the council to be appointed to the Chief Executives, Boards of the Nationalised Commercial Banks (NCBs) and Development Finance Institutions (DFIs). The State Bank having a role in their appointment and removal. The amendments also increased the autonomy and accountability of the chief executives, the Boards of Directors of banks and DFIs.
The State Bank of Pakistan also performs both the traditional and developmental functions to achieve macroeconomic goals.




The State Bank of Pakistan has also been entrusted with the responsibility to carry out monetary and credit policy in accordance with Government targets for growth and inflation with the recommendations of the Monetary and Fiscal Policies Co-ordination Board without trying to effect the macroeconomic policy objectives.








The state bank also regulates the volume and the direction of flow of credit to different uses and sectors, the state bank makes use of both direct and indirect instruments of monetary management. During the 1980s, Pakistan embarked upon a program of financial sector reforms, which lead to a number of fundamental changes. Due to these changed the conduct of monetary management which brought about changes to the administrative controls and quantitative restrictions to market based monetary management. A reserve money management programme has been developed, for intermediate target of M2, that would be achieved by observing the desired path of reserve money - the operating target.












Banking


The State Bank of Pakistan looks into a lot of different ranges of banking to deal with the changes in economic climate and different purchasing and buying powers. Here are some of the banking areas that the state bank looks into;

  • State Bank’s Shariah Board Approves Essentials and Model Agreements for Islamic Modes of Financing
  • Procedure For Submitting Claims With Sbp In Respect of Unclaimed Deposits Surrendered By Banks/Dfis.
  • Banking Sector Supervision in Pakistan
  • Micro Finance
  • Small Medium Enterprises (SMEs)
  • Minimum Capital Requirements for Banks
  • Remittance Facilities in Pakistan
  • Opening of Foreign Currency Accounts with Banks in Pakistan under new scheme.
  • Handbook of Corporate Governance
  • Guidelines on Risk Management
  • Guidelines on Commercial Paper
  • Guidelines on Securitization
  • SBP.Scheme for Agricultural Financing


Departments


  • Agriculture credit
  • Audit
  • Banking Inspection
  • Banking Policy & Regulations
  • Banking Supervision
  • Corporate Services
  • Economic Analysis
  • External Relations Department
  • Financial Monitoring Unit
  • Monetary Policy
  • Research
  • Statistics and Data Warehouse
  • Exchange Policy
  • Human Resource
  • Information Systems & Technology
  • Islamic Banking
  • Legal Services
  • Library
  • Payment System
  • Real Time Gross Settlement System (RTGS System)
  • Small and Medium Enterprises
  • Training and Development Department (TDD)
  • Treasury Operations
  • Strategic & Corporate Planning
  • Microfinance
  • Pakistan Remittance Initiative































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