Presentation of State Bank Pakistan

8/2/2019 Presentation of State Bank Pakistan

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PRESENTED BY :

Arooj SaeedHaider Ali Baig

Syed Razi Abbas

Syed Billal Kazmi

Muhammad Muslim


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Presented by:HAIDER ALI BAIG


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Presented by:SYED BILLAL KAZMI


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CURRENCY ISSUANCE IN PAKISTANThe first and one of the most valuable functions that rootsthe state bank of Pakistan is issuance of currency, reason of

a single body to issue the currency Confidence level: Sound monetary structure:Banks lending: Controlling power: Uniform notes


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Currency Principle:In order to maintain the position of paper money it

should be backed by 100% gold reserve for theconversion of notes when required.

Bank Principle:Banking principle there is no need of keeping

reserve of gold and silver for the notes issuance. The

banks are the regulatory body in note issuing keepingin mind the requirements of the commerce in thecountry.


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Automation of Currency OperationsA computerized process to issue and to maintainaccounting of notes is used in all Issue Offices of SBP.

New Design BanknotesTo reduce the threats such as forged banknotes of variousdenominations state Bank has introduced new designedbanknote with new security features, internationalstandards is one of the measures for this problem.

Security features of Bank notes Visible Features Invisible Features


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Establishment of Forensic Laboratory The examination of counterfeit currency notes

Forensic Laboratory are referred to, by the SBP as itsdepartment is less equipped with advance testing

abilities. Estimation of demand for Bank Notes

Estimation of demand of Bank notes takes place onwith the calculation of the

Growth rate of the economy, Expected inflation rate,

Soiled notes replacement,

Demonetizations and stock position.


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Presented by :SYED RAZI ABBAS


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SBP being the central bank in Pakistan commercial banks working in Pakistan

deal

obtaining loans or rediscounting bill ofexchange.

Scheduled banks 5% cash reserves

foreign banks 7% cash reserves

the agricultural and industrial sector loans by the SBP under the Agricultural

Financing Scheme


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SBP also lends securities

SBP cannot sell or purchase shares

Working for the development of theeconomy


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Commercial banks inside a country the centralbank acts as clearing house

Functions are performed by NIFT

Reports are then handed over to the SBP SBP as well as NIFT perform the following

functions:

Liquidity position

Interbank transactions Harmful and unwanted competition

Defer payments of commercials


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Monetary aspects

Government actions

Rural as well as agricultural credit,

Credit control

Savings and plans economic stability

Chalking out economic stability.

Balance of payments, capital flightsinvestments and foreign payments


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Assists the government in speedy growth ofthe economy

Appointing the governor, director

Government of Pakistan reserves the rightto suspend or scrutinize the SBP if they feelthe need to check up on the financial

dealing of the bank.


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Commercial banks are in trouble and need tobe bailed out via cash

SBP is always there to provide them with loans

to take care of their inter-bank dealing some type of security

helps commercial banks maintain a steadfast

reputation within the banking industry.


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Economy to become successful credittransactions prove to be the most effective longterm basis with the help of interest on the

loans. Pakistan being a third world country is in dire

need of long-term investment

Credit transactions to economic prosperity.


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Some of the tools used by the SBP in orderto control credit expansion are as follows:

Open Market Operations

Bank Rate Policy Changes in Reserve Ratio

Changes in Margin Requirements

Changes in Liquidity Ratio

Moral Persuasion


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Presented by:MUHAMMAD MUSLIM


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SBP have to fosters the economic stability andbrings the prosperity

Identify the major problems and gives strategic

solutions Defining the road maps for the banking

industry and related functions

SBP provides trained and educated employees

generated from NIBAF SBP takes instant steps to pull the country out

of instabilities like recession, depression or inthe hard times.


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Credit Investments are the major fiscal andeconomical variables

Credit Investments are managed by Credit

Institutions under the supervision of SBP. Such Institutions are very useful for various

companies and sectors who need all short andlong term loan, and required credit

Like: ZTBL, ICP, NIT, HBFC, NDFC


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SBP is confronting from many great challenges Like the lack of skilled staff,

Spoiled banking structure

Undeveloped banking habits

SBP is continuously working for the betterment andadvancement of the banking culture and exclusivelypay attention towards growth of the banking world.

SBP has a foolproof system of inspection to keep safethe standard of the banking system and compelled

other banks to strictly follow the banking rules andregulations.

Critically examines the depositors security and checkthe depositors interests are being protected.


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SBP has an important responsibility to controlthe value of rupee externally

SBP important factor and vision is to maintain

the exchange rate and avoid fluctuation in thecountry.

Floating Exchange Rate System

The rate is determined by the demand andsupply in foreign exchange market throughthis system.


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Presented by:AROOJ


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In 1948, the state Bank was encouraged withthe obligation to "control the issue of Banknotes and maintaining reserves to protect and

secure financial loyalty in Pakistan

Banks operations were broadly mentioned in1956 act, according to which Bank requires tocontrol and regulate the monetary and creditsystem of Pakistan


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To achieve macro-economic goals ,State Bank

of Pakistan performs both traditional anddevelopmental functions.

TRADITIONAL FUNCTIONS They are further categorize into : primary and

secondary functions

(a) The Primary Functions:

Issue of notes

Regulation and management of the monetarysystem


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Lender of the last resort, Banker to Government,

Manner of monetary policy

(b) The Secondary Functions:

Organization of public debt,

Management of foreign exchange,

Advising policy matters to government

Establishing good relationships with international

financial institutions


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Development of financial framework

Institutionalization of savings and

investment

Provision of training facilities to bankers

Provision of credit to precedence sectors.

Actively contributing towards

islamization of the banking system


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OTHER RESPONSIBILITIES

Manage to regulate the quantity and the pathof flow of credit to different uses and sectors

Regulation and supervision of financial systemis one of the important responsibilities andstate bank ensure in terms of its :

reliability loyalty

protecting the interests of depositors.


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The banking actions are now being monitoredthrough a system of off-site observation and

on-site assessment

Off-site observation includes routinelyreturns received from the different banks

on-site inspection is undertaken by the StateBank in the premises of the concerned bankswhen required.


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The State Bank obligations recommend guide

lines for : classification of short-term and long-term loan

facilities,

prohibit criminal use of banking for illegalactivities,

set down rules for dividend payment

prohibit them to enlarge new laon to

defaulters of old loans


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State Bank is also fulfilling responsibility toregulate foreign exchange reserves of the countryaccording to Foreign Exchange Act 1947.

AN Investment Committee is performing thetask of taking into deliberation the overall :

- Intensity of reserves,

- Maturities and payment obligations,- Takes judgment to make investment of

surplus


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Training Department in state bank is also envisagedin the Training Polices and Programmes (TPP) and isaccordingly approved by the Board.

Training Managers will be responsible for identifying

the training requirement needs of the SBP staff .Thesuitable managers will be in-charge of organizing thelogistic support for foreign

Training,Invitation,Exchange of information,Secretariat function for the Foreign Training SelectionCommittee,


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The training programs have been designed andoffered to officers in the areas of :Banking Supervision,

Applied Accounting, Commercial Banking and Communication Skills.

This opportunity will lead officers to improve

their skills and update themselves with the paceof changes in areas of banking.


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Presentation of State Bank Pakistan

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