Functions of SBP

FUNCTIONS OF STATE BANK OF PAKISTAN
SBP should perform the following functions:
STATUTORY OBLIGATIONS:
It should perform its statutory obligations. In statutory obligations many things just as: Statutory cash reserve: Every scheduled bank is required to maintain some amount with state bank which shall not at the close of business or any day be less than such percentage determined by state bank. Minimum paid up capital: In terms of Section 13 of Banking Companies Ordinance, 1962 no banking company shall commence business unless it has a minimum paid up capital as may be determined by the State Bank. Annual accounts: At the expiration of each calendar year every banking company incorporated in Pakistan, in respect of all business transacted by it, and every banking company incorporated outside Pakistan, in respect of all business transited through its branches in Pakistan, shall prepare with reference to that year a balance-sheet and profit and loss account as on the last working day of the year in the prescribed forms.
CORE FUNCTIONS:
SBPs core functions include the following: State Bank of Pakistan performs both the traditional and developmental functions to achieve macro-economic goals, may be classified into two groups: (a) The primary functions including issue of notes, regulation and supervision of the financial system, bankers bank, lender of the last resort, banker to Government, and conduct of monetary policy. (b) The secondary functions including the agency functions like management of public debt, management of foreign exchange, etc. (c) Other functions like advising the government on policy matters and maintaining close relationships with international financial institutions.
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 Governments targets for growth and inflation and the recommendations of the Monetary and Fiscal Policies Co-ordination Board with respect to macro-economic policy objectives.
Ensuring the Soundness of Financial System: Regulation and supervision:

One of the fundamental responsibilities of the State Bank is regulation and supervision of the financial system to ensure its soundness and stability as well as to protect the interests of depositors. Off-site surveillance is conducted by the State Bank through regular checking of various returns regularly received from the different banks. On other hand, on-site inspection is undertaken by the State Bank in the premises of the concerned banks when required.
Exchange rate management and balance of payments:

One of the major responsibilities of the State Bank is the maintenance of external value of the currency. In this regard, the Bank is required, among other measures taken by it, to regulate foreign exchange reserves of the country in line with the stipulations of the Foreign Exchange Act 1947. The Bank is responsible to keep the exchange rate of the rupee at an appropriate level and prevent it from wide fluctuations in order to maintain competitiveness of our exports and maintain stability in the foreign exchange market. To achieve the objective, various exchange policies have been adopted from time to time keeping in view the prevailing circumstances. The State Bank is also responsible for the management of the foreign exchange reserves.
Development role of State Bank of Pakistan:

The responsibility of a Central Bank in a developing country goes well beyond the regulatory duties of managing the monetary policy in order to achieve the macro-economic goals. This role covers not only the development of important components of monetary and capital markets but also to assist the process of economic growth and promote the fuller utilization of a countrys resources.
LIST OF BANKS IN PAKISTAN: Micro finance banks:

NRSP Micro Finance Bank Limited The First Micro Finance Bank Limited Khushali Bank Limited Karakuram Bank Network Micro Finance Bank Pak Oman Micro Finance Bank Rozgar Micro Finance Bank, Karachi Tameer Microfinance Bank Limited Kashf Microfinance Bank Limited
Investment banks:

Invest Capital Investment Bank Limited IGI Investment Bank Limited AMZ Securities Orix Leasing (Pakistan) Limited Trust Investment Bank Limited Arif Habib Investment and Mutual Funds Co.
LIST OF SCHEDULED FOREIGN BANKS OPERATING IN PAKISTAN:

1. ABN Amro Bank N.V. 2. Al-Baraka Islamic Bank B.S.C.(E.C.) 3. American Express Bank Limited. 4. Bank of Cylon. 5. Credit Agricole Indosuez. 6. Citibank N.A. 7. Deutsche Bank AG. 8. Doha Bank. 9. Habib Bank A.G. Zurich. 10. International Finance Investment & Commerce Bank Limited (IFIC) 11. Mashraq Bank psc. 12. Oman International Bank S.O.A.G. 13. Rupali Bank Limited. 14. Standard Chartered Bank (Pakistan) Limited. 15. Standard Chartered Grindlays Bank Limited. 16. The Bank of Tokyo-Mitsubishi Limited. 17. The Hongkong and Shanghai Banking Corporation Limited.

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FUNCTIONS OF STATE BANK OF PAKISTAN

SBP should perform the following functions:

Ensuring the Soundness of Financial System: Regulation and supervision:

Exchange rate management and balance of payments:

Development role of State Bank of Pakistan:

LIST OF BANKS IN PAKISTAN: Micro finance banks:

LIST OF SCHEDULED FOREIGN BANKS OPERATING IN PAKISTAN:

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