1

University of Central Punjab GujranwalaUniversity of Central Punjab Gujranwala

2

Novelty Group

3

Project

Rabbiyah Introduction & Primary Functions of SBP

Ayesha Secondary Functions of SBP & Sub-Groups of SBP

Madeeha Non-Traditional Functions

Jasia Development Finance & its Role

4

State Bank of Pakistan

5

6

History

• Reserve bank of India

• Distribution of RBI’s reserve after independence

• Establishment of SBP in 1948

7

Facts and figures

Central Bank of: Pakistan

Established:1948

Headquarter s:Karachi & Islamabad

Offices : 16 office in whole pakistan

Governor: Mr. Yaseen Anwar8

Functions of SBP

There are three main types of Functions of SBP

Core Functions Traditional Functions

1. Primary Functions

2.Secondary Functions Non-Traditional Functions

9

10

Primary Functions

Issuance of Notes Conduct of Monetary & Credit Policy Regulation & Supervision of Financial

System Banker’s Bank Lender of Last Resort Banker to Government

11

• Issuance of noteso SBP has monopoly according to act

1956o Two departments:

Issue department banking department

12

Issuance of Notes

o Min. amount of reserve for issue of notes is 1.2 billion (30%)

o Issue offices: located in Karachi, Peshawar, Lahore& a number of currency chest all over the country

13

Conduct of Monetary & Credit Policy

14

Main Instruments for Credit Control

15

Repo Rate

OMO

SLR

CRR

Regulation & Supervision of Financial System

16

Off-Site Monitoring

On-Site Monitoring

Banker’s Bank

Services to Schedule Banks

Deposits of Schedule Banks Remittances Facilities Clearing House

17

Lender of the Last Resort

18

Banker to the Government

19

Secondary Functions

Public Debt Management Management of Foreign Exchange Advisor to Government Relations with IFI’S

20

Public Debt ManagementPublic Debt Management

21

Management of Foreign Exchange

22

Exchange Rate Regime

Forex Market

Advisor to Government

MFPCB Reports on the state of Economy

23

Relationship with IFIRelationship with IFI

24

Sub-Groups of State Bank of Pakistan

There are only two Sub-Groups of SBP

Banking Service Corporation (BSC) National Institution of Banking & Finance (NIBF)

25

Non-Traditional Functions

Development of Financial Institutions Training Facilities to Banker Development of Specialized Financial

Institutions Credit to Priority Sector

26

Development of Banking System

27

Training Facilities to Bankers

28

IBP

Library Services

For Rural Finance

NIBAF

SEANZA

Development of Specialized Financial Institutions

29

Credit to Priority Sector

30

Export Financing Scheme

Credit To Agriculture

Development Finance

31

Introduction Development of an inclusive financial system

in the country. The Divisions/Units in the field offices are the

local contact points for continuous interaction with stakeholders.

The establishment of Development Finance Group (DFG) in SBP and creating the necessary institutional capacity in SBP to achieve this strategic objective.

Cont’d DFG is engaged in enhancing its capacity to

catalyze and facilitate expansion of financial services in un-banked/under-banked areas/sectors.

The group based in Karachi Not continuously interact with grassroots level

stakeholders and monitor banks’ progress to develop and expand their development finance capacity.

Cont’d The SBP-BSC however has presence in 16 key

areas/regions across the country with immense potential for growth of development finance.

The DFSD though based in BSC Head Office Karachi (HOK), it has gradually established Units in 13 field offices.

Ensure access to financial services to all segments/sectors of the economy.

Cont’d The Development Finance Support

Department (DFSD) in the BSC is aimed at using the BSC field offices across the country to augment the DFG capacity and its role for connecting the un-banked/under-banked areas/sectors with the country’s financial markets.

Development Finance Institutions1. House Building Finance Company Limited2. Pak Brunei investment Company Limited3. Pak-China Investment Company Limited4. PAIR Investment Company Limited5. Pakistan Kuwait Investment Company

Limited6. Pak Libya Holding Company Limited7. Pak Oman Investment Company Limited8. Saudi Pak Industrial & Agricultural

Investment.

36

Role Of Development Finance

Coordination and interaction with DFG and banks.

Monitoring banks performance Collect data for assessment of banks Maintain province, district , and region

wise database. Monitor banks progress towards

increasing retail capacity.

Cont’d Facilitate linkage between banks and

technical and vocational institutions. Develop links SMEDA, SMEs, MEs,

Chamber of commerce etc. To facilitate the DFSUs in conducting the

meetings of Regional Focus Groups for Agriculture, SME and Micro-finance.

Cont’d To develop linkages with provincial and

District governments, agricultural research and extension departments.

To organize programs/field visits/workshops/seminars in consultation with DFG to create awareness.

To develop linkages with universities and colleges in the region.