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Acknowledgment
All praise is for Almighty Allah, the most merciful most compassionate
who help his poor creatures in the time of crisis and best owned upon it,
Last but not least we wish to express our feelings and passion of
gratitude to our parents who always prayed for our success, health and
brilliant future. Our words cannot express our deepest thanks to our
parents whose love and sacrifices are invested and written on every
page.
Introduction:
Before the World War First, there were only a few countries, which had
there own central banks. After the War, the number of central banks
Organizational Hierarchy
Governor
Deputy Deputy
Governo Governo
r STATE BANK OF PAKISTAN r
Executive Directors
Joint Director
Dy. Director
Assistant Director
ANNUAL ACCOUNTS:
State Bank of Pakistan is the Central Bank of the country. While its
constitution, as originally laid down in the State Bank of Pakistan Order
1948, remained basically unchanged until 1st January 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.
Issue of notes,
Regulation and supervision of the financial system,
Bankers’ bank,
Lender of the last resort,
Banker to Government,
Conduct of monetary policy.
REGULATION OF LIQUIDITY:
Being the Central Bank of the country, State Bank of Pakistan has been
entrusted with the responsibility to formulate and conduct monetary
and credit policy in a manner consistent with the Government’s targets
for growth and inflation and the recommendations of the Monetary and
Fiscal Policies Co-ordination Board with respect to macro-economic
policy objectives. The basic objective underlying its functions is two-
fold i.e. the maintenance of monetary stability, thereby leading
towards the stability in the domestic prices, as well as the promotion of
economic growth.
The "Prudential Regulations" for banks, besides providing for credit and
risk exposure limits, prescribe guide lines relating to classification of
short-term and long-term loan facilities, set criteria for management,
prohibit criminal use of banking channels for the purpose of money
laundering and other unlawful activities, lay down rules for the
payment of dividends, direct banks to refrain from window dressing
and prohibit them to extend fresh loan to defaulters of old loans. The
existing format of balance sheet and profit-and-loss account has been
changed to conform to international standards, ensuring adequate
transparency of operations. Revised capital requirements, envisaging
minimum paid up capital of Rs.500 million have been enforced.
Effective December,1997, every bank was required to maintain capital
and unencumbered general reserves equivalent to 8 per cent of its risk
weighted assets.
The "Rules of Business" for NBFIs became effective since the day NBFIs
came under State Bank’s jurisdiction. As from January, 1997, Modaraba
and leasing companies, which are also specialized type of NBFIs, are
being regulated/supervised by the Securities and Exchange
Commission (SECP), rather than the State Bank of Pakistan.
State Bank of Pakistan (SBP) which is the Central Bank of the country
has been interalia entrusted with the responsibility for an ongoing
effective supervision of the banking sector. The relevant provisions of
law, which vest powers in State Bank of Pakistan (SBP) to carry out
inspection of banks, are contained in the Banking Companies
Ordinance, 1962. Besides, State Bank of Pakistan Act, 1956 and the
Bank’s Nationalization Act, 1974, The Financial Institutions (Recovery
Prohibiting the bank from giving loans, advances & credits. Prohibiting
the bank from accepting deposits. Cancel license of a bank. Give
directions to the bank as it deem fit. Remove chairman, directors, chief
executive or other managerial persons from the office and appoint a
person as chairman, director or chief executive.
The State Bank has framed Prudential Regulations for banks and Rules
of Business for DFIs that present a prudent operating framework within
which banks and DFIs are expected to conduct their business in a safe
and sound manner taking into account the risks associated with their
activities. These regulations incorporate the spirit and essence of BIS
regulations and are constantly watched for possible improvement so
that their enforcement yields the best results to promote the
objectives of supervision.
While the off-site monitoring aspect is looked after by the State Bank
of Pakistan’s Banking Supervision Department the responsibility for the
on-site examination of the banking system in Pakistan lies on the
shoulders of the Banking Inspection Department. This has been
designed to ensure that institutions operate in a safe and sound
manner. The focus of the supervisory efforts by the State Bank of
Pakistan is on the health and stability of the banking system in
Pakistan.
A. Supplementary Capital:
Location
The Academic block of the institute is well equipped with all latest
state of all audio visual aids & a computer laboratory. The spacious
training rooms, Auditorium, and Syndicate rooms are suitable for any
type of training program /courses. The library of the institute contains
a rich collection of books, banking journals and periodicals besides
providing a client and congenial atmosphere for all the participants to
get benefit of learning.
The Publication Wing housed in the Academic Block provides all sort of
published material which includes course books, reading material,
photocopies, arranging of training material, hand books of training and
other publications of NIBAF to the trainees, participants, trainers,
The hostel block of NIBAF consists of 120 single occupancy rooms and
4 executives suits that are fully furnished having all facilities of four-
star hotel providing homely environment. There is also a well-
maintained cafeteria supported by a modern commercial kitchen,
providing catering services to trainers & participants. Indoor games
and other recreational facilities like TV, VCR is available in the lounge
of the block. To promote healthy competition tournaments are held for
each course participants. Sight seeing trips are also arranged to visit
hill stations like Murree, Nathiagalli, Taxilla, Bhourbon, Kaghan, Naran,
etc on weekends /holidays. Such activities are part of the recreational
program arranged for participants to enjoy their leisure hours and to
keep them healthy and fit after long training.
NIBAF is now regarded as an institution of excellence in the area of
training of Banking & Finance in Pakistan. The top international
institutions like IMF; Bank Negra Malaysia has appreciated NIBAF for its
arrangements.
Institutional Arrangements:
Account Department:
• Currency Division
• International Division
• Accounts Division
• Audit Division
• Support Services Division
1. CURRENCY DIVISION
• Arrange currency operation in the country which relates to
designing of currency notes, its printing through Pakistan
Security Printing Corporation and its issue through our offices of
issue i.e. Karachi, Lahore, Peshawar and Quetta.
• Regulate the withdrawal of old notes from circulation and
maintenance of its account etc.
• Issuance of weekly statement of Affairs and preparation of
Balance Sheet of Issue Department.
• Arrange purchase of confiscated Gold from Government
Departments.
INTERNATIONAL DIVISON:-
ACCOUNTS
DIVISION
AUDIT DIVISION:
SUPPORT
SERVICES
DIVISION
Policy &
Regulation
Section
Administration Section:
Funds Section:
Economic Department:
The Department also deals with external sector issues and references
on money, credit and exchange rates management. For operational
purposes, the Department has been divided into the following four
groups:
The group is responsible for preparing credit plans, working papers for
NCCC meetings and performs Secretariat work for NCCC. Other
assignments include credit targeting, credit monitoring, banking issues
and reforms, Inflation watch, analysis of lending rates, large scale
manufacturing developments & disposal of references on credit
allocation. The group also prepares periodic reports/reviews on Credit
assessment of Private sector, credit assessment of govt. sector,
analysis of tax revenue, NSS rates, domestic debt and impact analysis
of various policy initiatives. The group also intends to initiate work on
micro credit and SMEs.
The Authorized Dealers are free to decide the rate of return on these
accounts payable to the depositors. They are also free to recover
reasonable bank charges on handling cash transactions in foreign
currencies received into or paid out of such accounts.
Islamic Baking: