Professional Documents
Culture Documents
Karachi
Internship Report
Submitted to:
Prof. Hafiz Abdul Rasheed
Submitted By: Muhammad Noman MBA(Banking & Finance) Exam Roll No.: 444 Section: A Session: 2009-2011
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Prof. Hafiz Abdul Rasheed Hailey College of Commerce, University of the Punjab, Lahore. SUBJECT: REQUEST FOR THE SUBMISSION OF INTERNSHIP REPORT
Respected Sir, I conducted my internship at State Bank of Pakistan, Karachi. During this internship I prepared a report on Reserve Management Framework and Selected International Markets and investment Department (IMID). I worked in this department with full concentration and hard work. Now at the completion of this internship I request you please accept my internship report.
Yours obediently,
Muhammad Noman MBA.(General) Roll No. 444 Section A Morning Hailey College of Commerce, University of the Punjab, Lahore.
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ACKNOWLEDGEMENT
All the acclamation and appreciation is for Almighty Allah the most merciful, gracious and beneficent who is entire source of all the knowledge and wisdom endowed to mankind. All the thanks to the name of Almighty Allah, who helped me in setting goals and objectives and blessed me to reach the destination. Without His assistance none is capable of accomplishment. I would be doing injustice without mentioning the name of the person who helped me through out the report and made me understand the major concep ts of Reserve management framework. So my special thanks go to Miss. Asma Yousaf. Heartiest gratitude and compliments to my Parents, without their continuous love and encouragement I could not complete this task and in the end I would like to thank our worthy coordinator Mr. Mubashir without him I would not be able to complete this task. The report in your hand is the collection of my observations and research. The source of information for the preparation of report includes a thorough research conducted on the internet, SBP website, IMF publications, and Central bank of Australia.
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TABLE OF CONTENTS
Acknowledgement ................................ ................................ ................................ .. 2 List of illustrations ................................ ................................ ................................ ... 5 Executive summary ................................ ................................ ................................ 6 Introduction of SBP ................................ ................................ ................................ 9 History ................................ ................................ ................................ .................... 9 Core Functions of State Bank of Pakistan ................................ ......................... 11 Regulation of Liquidity ................................ ................................ ....................... 11 Regulation and Supervision ................................ ................................ .............. 12 Exchange Rate Management and Balance of Payments ................................ .. 13 Developmental Role of State Bank ................................ ................................ ... 14 Statutory Obligations ................................ ................................ ......................... 15 Vision Statement ................................ ................................ ................................ .. 18 Mission Statement ................................ ................................ ................................ 18 Core Value ................................ ................................ ................................ ........... 18 Organizational Structure ................................ ................................ ....................... 19 Central Board of Directors ................................ ................................ ................. 20 Ratio Analysis................................ ................................ ................................ ....... 21 Current Ratio ................................ ................................ ................................ ..... 21 Debt ratio ................................ ................................ ................................ .......... 22 Interest Coverage Ratio ................................ ................................ .................... 23 Operating Profit Margin ................................ ................................ ..................... 23 Net Profit Margin ................................ ................................ ............................... 23 Return on Assets................................ ................................ ............................... 25 Trend Analysis................................ ................................ ................................ ...... 26 Horizontal Analysis Interpretation ................................ ................................ ..... 32 SWOT Analysis ................................ ................................ ................................ .... 42 Strengths ................................ ................................ ................................ ........... 42 Weakness ................................ ................................ ................................ ......... 44 Opportunities ................................ ................................ ................................ ..... 45
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Threats ................................ ................................ ................................ .............. 46 SBP Report ................................ ................................ ................................ .......... 47 Australia ................................ ................................ ................................ ............ 47 Framework ................................ ................................ ................................ ........ 48 Objectives of reserves management ................................ ................................ . 48 Organizational and decision -making structure ................................ .................. 48 Institutional Framework ................................ ................................ ..................... 48 Organizational Structure ................................ ................................ ................... 48 Decision Making ................................ ................................ ................................ 50 Transparency and accountability ................................ ................................ ...... 51 Capacity to Assess and Manage Risk ................................ ............................... 53 Benchmark Portfolios ................................ ................................ ........................ 53 Conclusion................................ ................................ ................................ ............ 60 Recommendations ................................ ................................ ............................... 62 Glossary ................................ ................................ ................................ ............... 64 Appendix ................................ ................................ ................................ .............. 67 Training certificate ................................ ................................ ............................. 67 Letter of authorization ................................ ................................ ....................... 68 Latest annual financial statements ................................ ................................ .... 69 Bibliography................................ ................................ ................................ .......... 73
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LIST OF ILLUSTRATIONS
Figures
Figure 1 Organogram ................................ ................................ ........................... 19 Figure 2 Current ratio ................................ ................................ ........................... 21 Figure 3 Debt Ratio ................................ ................................ .............................. 22 Figure 4 Net Profit Margin ................................ ................................ .................... 24 Figure 5 Return on Assets ................................ ................................ .................... 25 Figure 6 Net Assets ................................ ................................ .............................. 34 Figure 7 Total Assets ................................ ................................ ........................... 38 Figure 8 Assets and Liabilities ................................ ................................ .............. 40 Figure 9 Organizational Structure of RBA ................................ ............................ 49 Figure 10 Decision Making Structure ................................ ................................ ... 50 Figure 11 Horizon Analysis................................ ................................ ................... 54
Tables
Table 1 Current Ratio ................................ ................................ ........................... 21 Table 2 Debt ratio ................................................................ ................................ . 22 Table 3 Interest Coverage Ratio................................ ................................ ........... 23 Table 4 Operating Profit Margin ................................ ................................ ........... 23 Table 5 Net Profit Margin ................................ ................................ ..................... 24 Table 6 Return on Assets ................................ ................................ ..................... 25 Table 7 Horizontal Analysis: Balance Sheet of Issuing Department ..................... 26 Table 8 Horizontal Analysis: Balance Sheet of Banking Department ................... 27 Table 9 Horizontal Analysis: Profit and Loss Account ................................ .......... 30 Table 10 Vertical Analysis: Balance Sheet of Issuing Department ....................... 33 Table 11 Vertical Analysis: Balance Sheet of Banking Department ..................... 35 Table 12 Vertical Analysis: Profit and Loss Account ................................ ............ 39 Table 13 Official Reserve Assets of Australia ................................ ....................... 47 Table 14 Currency, Asset, and Duration Benchmarks ................................ .......... 53 Table 15. Composition of Individual Portfolio Benchmarks ................................ .. 55 Table 16 Balance Sheet Issuing department ................................ ........................ 69 Table 17 Balance Sheet Banking department ................................ ...................... 70 Table 18 Profit and Loss Statement ................................ ................................ ..... 72
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EXECUTIVE SUMMARY
In order to be able to cope with the changing environment it is necessary to have some practical experience. As the students of Commerce & Business we have to pass through a series of various managerial techniques. During this practical course we are provided with an opportunity to learn that how the theoretical knowledge can be implemented in practical grounds. I selected to do my internship in State Bank of Pakistan, Karachi. I worked there for six weeks & it gave me a greater practical knowledge ab out the operations of the bank. The objective of this Internship was to explore the issues relating to Finance and to find out problems regardi ng the theoretical concepts with practical experience working in an organization during the internship and study the system of State Bank of Pakistan Karachi. There are many possible improvements, which we can make positive changes in the system. The report includes the history of State Bank of Pakistan products and services offered by the bank, its financial analysis, assignments handled at the bank and some suggestion on the basis of my experience about the bank. State Bank of Pakistan was inaugurated by Quaid e Azam on 1 st July 1948 at Karachi. He said in his first address at that occasion that the bank will serve the economy and bank will be responsible for issuing note and regulate the whole monetary system the role and responsibilities of the bank was widened by State Bank Act 1956. SBP is performing traditional and non traditional functions for the banking sector of Pakistan and is taking steps towards islamization of banking system. 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. The secondary functions including the agency functions like management of public debt, management of foreign exchange, etc., and other functions like advising the government on policy matters
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and maintaining close relationships with international financial institutions. State Bank is performing different kind of functions like regulation of liquidity it controls the money supply in the county to avoid inflation and uses various tools to control the supply of money e.g. it uses open market operation, discount rate . If it wants to decrease the money supply it increased the discount rate and sells the T bills that are safer investment and the situation is reverse then it purchases the T Bills from banks and reduces the discount rate. State bank is also a regulator and supervisor it devices various policies for commercial banks and supervise whether they are complying the rules and regulations for this purpose SBP has a separate dept that is inspection and banking surveillance dept which ensures the compliance. SBP is responsible for exchange rate management now the Govt of Pakistan has adopted the floating exchange rate system balance of payment also controlled by the SBP it provides the reserves to the government for the payment of loans because it is custodian of reserves. Being the controller of financial system it maintains certain type of reserves from the commercial banks as statutory liquidity requirements(SLR) and cash reserve requirements(CRR) it has placed restrictions on the of minimum capital requirement(MCR). State Bank has some core values that poses the major theme of work and add uniqueness in image of Bank. Trust Openness Team work Courage Commitment to excellence Problem solving approach Mr. Yaseen Anwer is the acting Governor of the bank after the resignation Mr. Syed Saleem Raza. SBP has 33 departments which are housed in 10 stories building. After that there is trend analysis in the report in which different years financial statements are compared in horizontal and vertical analysis. Different
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charts are also included in the report to enhance the understanding of the users. All the results of analysis are compiled in tabular form and pie, bar charts. SWOT analysis is also given in which different strengths are explained which the central bank owns different problematic areas are also discovered which hinder the work smoothness. Different opportunities that can improve the performance and system of the bank. At my stay at SBP a project was also assigned to me which I had completed namely Reserve Management Framework and supervised by Miss Asma Yousaf (Fund Manager) and presented in a joint se ssion. At the end of report some recommendations are also given based on my observation and study of system of SBP.
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INTRODUCTION OF SBP
State Bank of Pakistan is the Central Bank of the country. While its constitution, as originally lay 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. Under the State Bank of Pakistan Order 1948, the Bank was charge 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". The scope of the Banks operations was considerably widened in the State Bank of Pakistan Act 1956, which required the 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 utilization of the c ountrys productive resources". Like a Central Bank in any developing country, State Bank of Pakistan performs both the traditional and developmental functions to achieve macro economic goals.
[8]
HISTORY
Before independence on 14 August 1947, the Reserve Bank of India (central bank of India) was the central bank for what is now Pakistan. On 30 December 1948 the British Government's commission distributed the Bank of India's reserves between Pakistan and India - 30 percent (750 M gold) for Pakistan and 70 percent for India. The losses incurred in the transition to independence were taken from Pakistan's share (a total of 230 million). In May, 1948 Muhammad Ali Jinnah (Founder of Pakistan) took steps to establish the State Bank of Pakistan
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immediately. These were implemented in June 1948, and the State Bank of Pakistan commenced operation on July 1, 1948. 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 utilization of the countrys productive resources". In February 1994, the State Bank was given full autonomy, during the financial sector reforms. On January 21, 1997, this autonomy was further strengthened when the government issued three Amendment Ordinances (which were approved by the Parliament in May 1997). Those included were the State Bank of Pakistan Act, 1956, Banking Companies Ordinance, 1962 and Banks Nationalization Act, 1974. These changes gave full and exclusive authority to the State Bank to regulate the banking sector, to conduct an independent monetary policy and to set limit on government borrowings from the State Bank of Pakistan. The amendments to the Banks Nationalization Act brought the end of the Pakistan Banking Council and allowed the jobs of the council to be appointed to the Chief Executives, Boards of the Nationalized Commercial Banks (NCBs) and Development Finance Institutions (DFIs). The State Bank having a role in their appointmen t 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 traditional functions may be classified into two groups: 1. 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. 2. The secondary functions including the agency functions like management of public debt, management of foreign exchange, etc., and other
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functions like advising the government on policy matters and maintaining close relationships with international financial institutions. The non-traditional or promotional functions, performed by the State Bank include development of financial framework, institutionalization of savings and investment, provision of training facilities to bankers, and provision of credit to priority sectors. The State Bank also has been playing an active part in the process of islamization of the banking system. Based on the specialization of functions all departments of SBP were divided into the following four clusters . 1. Economic policy and research cluster 2. Banking cluster 3. Corporate services cluster 4. Financial markets and reserve management cluster Each cluster contains groups and different groups include different departments. [8]
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distortions. Pakistan embarked upon a program of financial sector reforms in the late 1980s. A number of fundamental changes have since been made in the conduct of monetary management which essentially marked a departure from administrative controls and quantitative restrictions to market -based monetary management. A reserve money management program has been developed. In terms of the program, While use in now being made of such indirect instruments of control as cash reserve ratio and liquidity ratio, the programs reliance is mainly on open market operations.
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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 m inimum paid up capital of Rs.5 billion have been enforced. Effective Decemb er, 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 Banks jurisdiction. As from January, 1997, modarbas and leasing companies, which are also specialized types of NBFIs, are being regulated/ supervised by the Securities and Exchange Commission (SECP), rather than the State Bank of Pakistan.
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system w.e.f. January 8, 1982 under which the value of the rupee was determined on daily basis, with reference to a basket of currencie s of Pakistans major trading partners and competitors. Adjustments were made in its value as and when the circumstances so warranted. During the course of time, an important development took place when Pakistan accepted obligations of Article -VIII, Section 2, 3 and 4 of the IMF Articles of Agreement, thereby making the Pak-rupee convertible for current international transactions with effect from July 1, 1994. After nuclear detonation by Pakistan in 1998, a two-tier exchange rate system was introduced w.e.f. 22nd July 1998, with a view to reduce the pressure on official reserves and prevent the economy to some extent from adverse implications of sanctions imposed on Pakistan. However, effective 19th May 1999, the exchange rate has been unified, with the intr oduction of market-based floating exchange rate system, under which the exchange rate is determined by the demand and supply positions in the foreign exchange market. The surrender requirement of foreign exchange receipts on account of exports and services, previously required to be made to State Bank through authorized dealers, has now been done away with and the commercial banks and other authorized dealers have been made free to hold and undertake transaction in foreign currencies. As the custodian of countrys external reserves, the State Bank is also responsible for the management of the foreign exchange reserves. The task is being performed by an Investment Committee which, after taking into consideration the overall level of reserves, maturities and payment obligations, takes decision to make investment of surplus funds in such a manner that ensures liquidity of funds as well as maximizes the earnings. These reserves are also being used for intervention in the foreign exchange market. For this purpose, a Foreign Exchange Dealing Room has been set up at the Central Directorate of State Bank of Pakistan and services of a Forex Expert have been acquired.
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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. Ever since its establishment, the State Bank of Pakistan, besides discharging its traditional functions of regulating money and credit, has played an active developmental role to promote the realization of macro-economic goals. The explicit recognition of the promotional role of the Central Bank evidently stems from a desire to re-orientate all policies towards the goal of rapid economic growth. Accordingly, the orthodox central banking functi ons have been combined by the State Bank with a well -recognized developmental role. The scope of Banks operations has been widened considerably by including the economic growth objective in its statute under the State Bank of Pakistan Act 1956. The Banks participation in the development process has been in the form of rehabilitation of banking system in Pakistan, development of new financial institutions and debt instruments in order to promote financial intermediation, establishment of Development Financ ial Institutions (DFIs), directing the use of credit according to selected development priorities, providing subsidized credit, and development of the capital market.
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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
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year a balance-sheet and profit and loss account as on the last working day of the year in the prescribed forms (Section 34 of Banking Companies Ordinance, 1962).
Submission of Returns
The accounts and balance-sheet referred to in section 34 together with the auditors report as passed in the annual General Meeting shall be published in the prescribed manner, and three copies thereof shall be furnished as returns to the State Bank within three months of the close of the period to which they relate (Section 36 of Banking Companies Ordinance, 1962).
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VISION STATEMENT
To transform the SBP into a modern and dynamic central bank, highly professional and efficient, fully equipped to play a meaningful role on sustainable basis in the economic and social development of Pakistan.
MISSION STATEMENT
To promote monetary and financial stability and foster a sound and dynamic financial system, so as to achieve sustained and equitable economic growth and prosperity.
CORE VALUE
1. Trust 2. Openness 3. Team work 4. Courage 5. Commitment to excellence 6. Problem solving approach
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ORGANIZATIONAL STRUCTURE
Figure 1 Organogram
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RATIO ANALYSIS
Current Ratio
Current ratio =
Current Ratio
2.9
2.8 2.7 2.6 2.5
2.4
2008 2009
Interpretation
The current ratio is one of the most used ratios that measure the solvency of firm and its ability to pay the short term obligation. As shown in the table in 2008 the bank has 2:61 ration which means that if it has two rupee it has to pay 61 paisa as liability that is pretty much good ratio in banking s ector. If we look at
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the 2009 the ration has increased to 2:98 means for every two rupee it has to pay 98 paisa as liability. This ratio is adverse as compared to 2008 because the liabilities have increased due to IMF loan and other conditional foreign loa ns.
Debt ratio
Debt ratio =
* 100
Debt Ratio
71.40%
71.30%
71.20%
71.10% 71.00%
70.90%
2008
2009
Interpretation
The debt ratio measures the proportion of assets financed by the outsiders money. The higher the ratio the greater the amount of other peoples money being used to generate the revenue. The bank has almost same ratio in the two years that shows its assets are financed up to 71% by the credit money that is not a good sign because it reduces the confidence of investors and this is acceptable
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up to 60% only. This ratio shows that bank has taken so many loans to run its affairs.
Interpretation
This ratio shows either the firm is able to meet its contractual interest payment. The higher the ratio the higher the ability to make its interest payment the state bank has well figure that shows it can easily meet its interest obligations in 2008. On the other hand it has also good current ratio that depict that it is able to meet its obligations.
Interpretation
The operating profit margin shows the percentage of each rupee remain as profit after the deduction of costs and all expenses except interest and taxes. The 91.76% shows that bank is earning almost 92 paisa and 8 paisa is going under the head of expenses. The higher the ratio better the firm is earning.
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* 100
5% %
Interpretation
The net profit margin shows the percentage of each rupee remain as profit after the deduction of costs and all expenses including interest and taxes. Higher net profit margin is preferable. The SBP net profit margin has increased in 2009 as compared to 2008 which shows that bank has greater profit in the year of 2009.
5%
% 2
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Return on Assets
Return on Assets=
* 100
Return on Assets
14.85%
14.80%
14.75%
14.70% 14.65%
14.60%
14.55%
Interpretation
This ratio measures the effectiveness of management that how it uses the available assets to generate revenue. Higher the ratio better is the position. In case of SBP it is also increased from 14.62 %to 14.81% in the FY of 2009 which shows the good indicator of bank performance.
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TREND ANALYSIS
Table 7 Horizontal Analysis: Balance Sheet of Issuing Department
Balance Sheet Horizontal State Bank of Pakistan: Issuing department Analysis in %age based on year 2007 Balance Sheet Items 2007 Assets Gold reserves held by the Bank Foreign currency reserves Special Drawing Rights of the IMF Notes and coins: Indian notes representing assets receivable from the Reserve Bank of India Coins Total: notes and coins Investments 3,012,270 3,650,519 108,830,311 2,718,036 3,401,714 458,259,765 2,496,236 3,223,901 675,410,375 -9.77 -6.82 321.08 -17.13 -11.69 520.61 638,249 683,678 727,665 7.12 14.01 81,277,106 685,468,587 12,383,051 130,970,552 439,104,769 11,632,215 157,543,551 378,121,392 6,318,150 61.14 -35.94 -6.06 93.84 -44.84 -48.98 (Rupees in 000) 2008 2009 2008 2009
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Commercial papers held in Bangladesh (former East Pakistan) Assets held with the Reserve Bank of India Total Assets 893,428,399 1,046,039,412 1,223,717,612 17.08 36.97 1,740,325 2,591,897 3,021,743 48.93 73.63 78,500 78,500 78,500 0.00 0.00
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220,191,485
201,477,313
470,360,068
-8.50
113.61
Reserve tranche with the IMF under quota arrangements Securities purchased under agreement to resale Current account of the Government of Punjab Current account of the Government of Baluchistan Current account of the Government of Azad Jammu and Kashmir Investments Loans, advances and bills of exchange Balances due from the Governments of India and Bangladesh (former East Pakistan) Property and equipment Intangible assets Other assets Total assets 19,019,433 163,769 15,433,411 959,191,125 18,522,284 120,923 17,605,450 1,135,820,480 18,073,733 116,393 8,630,077 1,377,964,974 -2.61 -26.16 14.07 18.41 -4.97 -28.93 -44.08 43.66 4,677,500 5,033,592 5,416,132 7.61 15.79 373,066,806 288,091,460 635,739,865 242,880,410 495,348,215 331,853,796 70.41 -15.69 32.78 15.19 0 518,564 0 4,820,407 13,908,793 7,127,734 188.54 47.87 40,915,860 33,715,973 -100.00 -100.00 10,881 13,286 15,048 22.10 38.30
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LIABILITIES Bills payable Current accounts of the Governments Current account with SBP Banking Services Corporationa subsidiary Securities sold under agreement to repurchase Deposits of banks and financial institutions Other deposits and accounts Payable to the IMF Other liabilities Deferred liability staff retirement benefits Capital grant rural finance resource centre Deferred liability staff retirement benefits Deferred income Total liabilities Net assets 340,845 783,068,699 176,122,426 206,244 812,950,141 322,870,339 193,549 979,089,234 398,875,740 -39.49 3.82 83.32 -43.21 25.03 126.48 3,939,778 4,204,684 59,431 59,430 0.00 -100.00 11,484,789 12,183,991 4,204,684 6.09 -63.39 104,135,996 85,063,742 72,229,063 771,183,634 145,601,026 91,263,686 60,279,837 800,500,476 167,779,189 419,003,041 43,016,815 974,691,001 39.82 7.29 -16.54 3.80 61.12 392.58 -40.44 26.39 305,168,576 424,549,382 273,739,781 39.12 -10.30 61,816,757 6,758,751 -89.07 -100.00 2,369,636 3,702,522 571,942 142,197,558 1,224,446 70,823,348 827,785 66,621,868 114.09 -50.19 44.73 -53.15
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REPRESENTED BY Share capital Allocation of special drawing rights of the IMF Reserves Unappropriated profit Unrealized appreciation on gold reserves Surplus on revaluation of property and equipment Minority interest 29,893 176,122,426 0 322,870,339 398,875,740 -100.00 83.32 -100.00 126.48 18,747,014 18,747,014 18,747,014 0.00 0.00 79,440,921 129,768,343 156,772,429 63.35 97.34 67,138,769 9,139,871 77,904,598 76,288,533 96,440,491 174,354,982 172,704,657 49,025,682 223,356,297 13.63 955.16 123.81 157.24 436.39 186.70 1,525,958 1,525,958 1,525,958 0.00 0.00 100,000 100,000 100,000 0.00 0.00
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87,224,103 Gross Margin Commission income Exchange gainnet Dividend income Other operating income - net Other income / (charges) - net 124,306,046 Less: Direct operating expenses Bank notes printing charges Agency commission (Provision) / reversal of provision for: loans, advances and other assets diminution in value of investments - other doubtful assets 212,057 138,093 118,504,357 -73,964 3,087,214 2,576,382 30,181,241 656,268 1,957,806 4,286,628
-68.09
-96.31
44.49
78.94
3,097,868 2,710,017
4,193,032 3,614,261
0.35 5.19
35.82 40.28
-451,726
-100.00
510.74
-98,687
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Less: General administrative and other expenses OPERATING PROFIT PROFIT FOR THE YEAR 109,293,856 173,681,489 215,109,198 58.91 96.82 9,210,501 8,888,130 10,897,194 -3.50 18.31
108,732,613
164,793,359
204,212,004
51.56
87.81
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1,046,039,412 1,223,717,612
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2009
2008
2007
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Loans, advances and bills of exchange Balances due from the Governments of India and Bangladesh (former East Pakistan) Property and equipment Intangible assets Other assets Total assets
242,880,410
331,853,796
21.38
24.08
5,033,592
5,416,132
0.44
0.39
1,135,820,480 1,377,964,974
LIABILITIES Bills payable Current accounts of the Governments Current account with SBP Banking Services Corporation- a subsidiary Securities sold under agreement to repurchase Deposits of banks and financial institutions Other deposits and accounts Payable to the IMF Other liabilities Deferred liability - staff retirement benefits Capital grant rural finance resource centre 6,758,751 424,549,382 145,601,026 91,263,686 60,279,837 800,500,476 12,183,991 59,430 273,739,781 167,779,189 419,003,041 43,016,815 974,691,001 4,204,684 0.60 37.38 12.82 8.04 5.31 70.48 1.07 0.01 0.00 19.87 12.18 30.41 3.12 70.73 0.31 0.00 2,369,636 3,702,522 1,224,446 70,823,348 827,785 66,621,868 0.11 6.24 0.06 4.83
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Deferred liability - staff retirement benefits Deferred income Total liabilities Net assets
REPRESENTED BY Share capital Allocation of special drawing rights of the IMF Reserves Inappropriate profit Unrealized appreciation on gold reserves Surplus on revaluation of property and equipment Minority interest 100,000 1,525,958 76,288,533 96,440,491 174,354,982 129,768,343 18,747,014 0 322,870,339 398,875,740 100,000 1,525,958 172,704,657 49,025,682 223,356,297 156,772,429 18,747,014 0.01 0.13 6.72 8.49 15.35 11.43 1.65 0.00 28.43 0.01 0.11 12.53 3.56 16.21 11.38 1.36 0.00 28.95
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Total Assets
Assets held with the Reserve Bank of India
Gold reserves
Investments
Gold reserves Foreign currency reserves SDRs Total: notes and coins Investments Commercial papers held in Bangladesh (former East Pakistan) Assets held with the Reserve Bank of India
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Discount, interest / mark-up and / or return earned Less: Interest / mark-up expense Gross Margin Commission income Exchange gain- net Dividend income Profit earned through subsidiaries Other operating income - net Other income / (charges) - net Less: Direct operating expenses Bank notes printing charges Agency commission (Provision) / reversal of provision for: 3,097,868 2,710,017 4,193,032 3,614,261 2.95 2.58 2.29 1.97 9,631,073 -442,148 1,114,285 52,020 9.18 -0.42 171.25 0.61 0.03 121.53 3,748,759 8,085,169 3.57 96.43 0.69 59.09 6.29 0.13 4.42 95.58 0.91 18.97 5.32 0.11 104,882,577 183,029,210 100.00 100.00
101,133,818 174,944,041 720,289 61,973,254 6,594,079 140,043 1,667,375 34,725,139 9,733,352 192,481
179,611,917 222,428,693
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loans, advances and other assets diminution in value of investments - other doubtful assets 122,543 122,543 Less: General administrative and other expenses OPERATING PROFIT PROFIT FOR THE YEAR 8,888,130
165.60 157.12
117.53 111.57
t & L b ti 1,600,000,000 1,400,000,000 1,200,000,000 1,000,000,000 800,000,000 600,000,000 400,000,000 200,000,000 0 2007 2008 y r 2009 Rup
Li bili i
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SWOT ANALYSIS
SWOT analysis is an acronym that stands for strengths, weakness, opportunities, and threats SWOT analysis is opportunities and threats. The overall evaluation of a company strengths, weaknesses, opportunities and threats is called SWOT analysis. In SWOT analysis the best strategies accomplish an organizations mission by: 1. Exploiting an organizations opportunities and strength. 2. Neutralizing it threats. 3. Avoiding or correcting its weakness. SWOT analysis is one of the most important steps in formulating strategy using the organization mission as a context, managers assess internal strengths distinctive competencies and weakness and external opportunities and threats. The goal is to then develop good strategies and exploit opportunities and strengths neutralize threats and avoid weaknesses. careful evaluation of an organizations internal strengths and weakness as well as its environment
Strengths
Premier Institution
SBP in one of the premier bank of Pakistan that is responsible for regulation of banking and monetary system of Pakistan since its inception. It provides some guidelines time to time for proper working of financial and monetary system in Pakistan.
Agent to Government
The SBP performs additional services for government by providing loans and managing the government accounts as well as the other banks.
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Reserve custodian
SBP is privileged to hold the reserves of the whole economy no other bank is authorized to hold the reserves except they can deal in reserves but the ultimate holder is SBP. It is also responsible to manage and control the exchange rate in the country.
Employee Benefit
The employers at SBP are offered reasonable monetary benefit. Normally bonuses are given. Employees also enjoy the interest free loans free medical care of family and insurance of life. These serve as a benefit and competency for the bank and a source of motivation for the employees.
Broad Network
The bank has another competency i.e. it has two subsidiaries one is the NIBAF and second one is the BBP-Banking Services Corporation. SBP has 33 departments that are performing their own separate functions.
Professional Competence
The employees at SBP here have a good hold on their descriptions, as they are highly skilled Professionals with better training programs in business administration, banking, economics etc. These professional competencies enable the employees to understand and perform the function and operation in better way.
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Healthy Environment
The working condition in the SBP Karachi is very good each and every employee has its own cabin to work with devotion without any disturbance and its office environment can be compared to any multinational organization. There is canteen for employees that cover a large area.
LRC
SBP has its own training department known as Learning Resource Center(LRC) all the training programs are held over their even the international seminars and meetings conducted over their.
Online Network
The bank has the strength of being powered by the network of computers, which have saved time, energy and would have lessened the mental stre ss, the employees have. This would add to the strength that is powered by network of computers.
Weakness
Lack of Marketing Efforts
The bank does not promote its corporate image, services, etc on a competitive way. Hence lacks far behind in marketing effort .A need for aggressive marketing in there in the era marketing in now becoming a part of every organization.
Political Pressure
The strong political hold of some parties and government and their dominance is affecting the bank in a negative way. They sometime have to provide loan under the pressure, which leads to uneven and adjusted feeling in the bank employees.
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Opportunities
Electronic Banking
The world today has become a global village because of advancement in the technologies, especially in communication sector. More emphasis is now given to avail the modern technologies to better the performances. SBP can utilize the electronic banking opportunity to ensure on line banking 24 hours a day. This would give a competitive edge over others.
Micro Financing
Because of the need for micro financing in the market, there are lot of opportunities in this regard. Now the time has arrived when the SBP must realize it and take on step to cater an ongoing demand and the Micro finance dept should device policies to strengthen the micro finance network .
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Threats
Political Pressure by Elected Government
The ongoing shift in power in political arena in the country effects the performance of the bank has to forward loans to politically powerful persons which create a sense of insecurity and demoralization in the customer as well as employees.
Data theft
The bank is currently dealing from data theft and the p resent technology in Pakistan is not that effective and others are very costly in providing a safe place on internet away from domestic and international hacks which threaten the environment of the bank
Customer Complaints
There exists no regular and specific system of the removal of customer complaints. Now a day a need for total customer satisfaction is emerging and in their demanding consequences customer's complaints are ignored.
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374.39
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Framework
Objectives of reserves management
Australias Reserves are held for intervention purpose. The primary role of the reserves portfolio is to fund foreign exchange market operations that arise as part of the Banks broader monetary policy function.
Analysis:
The reserves are managed in such a manner that it gives priority to low levels of credit risk, limited exposure to market risk, while maintaining a high degree of liquidity. They are managed to achieve the highest returns within defined risk parameters taking into account the need to ensure funds at short notice when required for intervention.
Organizational Structure
Responsibility for management of reserves is delegated by the Governor of the Bank to the Financial Markets Group (FMG). Firstly international department was responsible for both middle and front office function and back office was also located in it. As the scale of operations increased RBA made flexibility in investment operations. [160]
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Decision Making
Early every transaction in reserves management had to be approved by higher management. Later it was devised that day-to-day management of reserves should be delegated to an Investment Committee within the Financial Markets Group. The Committee, made up of senior managers from units involved in reserves management, had discretion to take sizable positions in currency and asset allocation subject to limits approved by the Governor. The Investment Committee meets regularly and takes positions largely based on assessments of the medium-term macroeconomic outlook of countries in which the reserves were invested. [166]
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Analysis:
Approval of transaction from higher management means it maximized control over the management process, but it makes decision making unwieldy and, therefore, poorly suited to a more active risk management framework. It also constrained initiative at manager levels. So in order to move to more active management above system was devised and a small and qualified amount of trading discretion was delegated to managers in trading centers.
Active Management
No More passive management is observed. Close to benchmark.
Analysis:
Before 2000, Short term investment decision made a positive return from market. Whereas investment position in medium term macroeconomics development also made positive returns in some years but negative returns in others leaving a small positive returns from this activity overall. This significantly reduced the importance of discretionary management. [158]
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Procedure Manual
A key element in the control of operational risk has been the development of manuals detailing investment and risk management procedures . [170] The manuals specify; y y y The kinds of instruments in which investments can be made The risk parameters for each portfolio, and The responsibilities of various positions associated with reserves management. They also specify how risks and returns are calculated and how office systems should be used in specific circumstances. Procedures manuals also exist for middle and back office staff.
Staffing policy
Staffing policy is another key element. The RBA has found considerable benefit in specialization of professional staff in operational areas. Frequently rotating staff in and out of these areas in order to provide a breadth of experience was felt to be a significant constraint on ma intaining adequate levels of experience and knowledge. Over the past ten years, efforts have been made to maintain a core of experience at senior levels within the operational areas while, at the same time, allowing rotation at junior levels in order to bu ild a foundation of experience. Compensation is reviewed regularly to ensure competitiveness with other organizations and staff is encouraged to participate in a range of courses.
[171]
Statements
The RBAs annual financial statements are prepared in accordance with Australian Accounting Standards and other mandatory reporting requirements contained in the Commonwealth Authorities and Companies Act . The statements are scrutinized by an external auditor, the Australian National Audit Office, to ensure that they comply with relevant standards.
[173]
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Audit
Reserves management functions are audited internally each year in accordance with recommended control frameworks published by the Bank for International Settlements and requirements set out by the Australian Financial Markets Association. The internal audit reports on compliance with controls and seeks to strengthen management processes where it sees potential for loss through inadequate cont rol.
Table 14 Currency, Asset, and Duration Benchmarks United States Currency allocation (%) Asset allocation (%) Duration (Months) 45 45 30 Europe 45 45 30 Japan 10 10 30
Analysis:
With the aim of maximizing the Banks capacity to intervene, thats way its decided that a trade weighted basket of currencies would be an appropriate currency. The decision was taken to spread the composition across the three major reserve currenciesthe U.S. dollar, deutschemark (later the euro), and Japanese yen. This also provided
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a diversified portfolio and meant, too, that the RBAs assets would be invested in capital markets that are liquid and highly rated. 30 month duration represents the maximum price risk that the RBA will allow itself while keeping the probability of capital loss to an acceptable level over the Banks investment horizon. An example of this analysis is given in Figure 3.
The RBAs investment horizon is of twelve months. This is based on the Banks investment objectives and the period in which it reports on its operations to the Australian Parliament. Over a twelve -month period, the RBA expects the return on the portfolio to fall within a 95 percent confidence band around the mean return, and will accept a negative return on only 2.5 percent of occasions. On this basis, return is maximized at point A in Figure 3, where the lower boundary of the confidence band crosses the horizontal axis.
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Composition of Benchmarks
The RBA has established benchmarks for the composition of each of the three asset portfolios. These benchmarks are set out in Table 3. Like the other benchmarks, practical and judgmental factors, combined with the liquidity characteristics in each market, are important in deciding the appropriate asset structure of the portfolios. Table 15. Composition of Individual Portfolio Benchmarks United States Asset Class % of Total Deposits Treasury bills Treasury Notes 22 21 57 Deposits Treasury bills Bonds Europe Asset Class % of Total 30 15 55 Deposits Treasury bills Bonds
[179]
Analysis:
The desire to maintain a liquid and secure portfolio led the RBA to limit its benchmark investments to government securities and cash instruments. Typically, some 75 to 80 percent of the RBAs benchmark foreign investment portfolios are held in government paper. For the European portfolio, the RBA has decided on a combination of French and German government securities as the best structure to satisfy requirements for credit risk and liquidity. In order to limit exposure to price risk, the maximum maturity of securities holdings is restricted to 10 years in each portfolio.
Cash Repo
Cash invested under repurchase agreements (repo) and deposits with highly rated banks make up the balance of the asset benchmarks.
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Analysis:
The RBA has found the short duration offered by deposits to be attractive in markets where access to short-term government debt was limited. They have also been a good, immediate source of liquid funds during episodes of currency intervention. That said, the proportion of foreign exchange reserves invested in deposits has declined in recent years, reflecting tighter credit constraints and changes in cash management practices. The RBA now makes greater use of cash repo, which has the security advantage of being collateralized with government securities. [181]
Instruments
In addition to the assets held in the benchmark portfolios, the RBAs dealing centers have discretion to hold a small range of other highly rated instruments. These include the [183] y y y U.K. Gilts, Dutch and Swiss government paper, Deposits and medium-term notes issued by the Bank for International Settlements.
Analysis:
With the exception of BIS deposits, these investments have accounted for a negligible share of total holdings. Discretion to hold U.K., Dutch, and Swiss paper is a remnant of a period in the 1980s when the composition of Australias official foreign currency liabilities influenced the composition of the reserves portfolio. Discretion also exists to hold U.S. Federal Agency debt in the U.S. portfolio as a source of return enhancement. Total holdings are restricted to a maximum of US$500 million. [183]
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Futures Contracts
In 1994, the Bank began trading interest rate futures contracts. Futures trading have been concentrated in the European and Japanese portfolios. The RBA does not use any over-the-counter or exchange-traded options in its reserves management activities.
Analysis:
The decision for futures trading was driven by a desire to improve management of market risk and, in particular, to provide a liquid hedging instrument to minimize the risk of capital losses when interest rates were rising. An additional attraction of using futures was the greater liquidity and flexibility that they provide in some markets when implementing investment strategies. Some futures markets are more liquid than their underlying physical bond markets in that the bid -offer spread is usually much narrower. [184]
Stock Lending
Stock lending is also an activity undertaken by the dealing centers.
Analysis:
As stock lending, particularly from the U.S. portfolio has risen to be a major component of return enhancement. Though the back office workload associated with this activity can be large. The RBA sees this activity as relatively low risk.
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Analysis:
Risk measurement and trading discretion around the duration benchmark for each asset portfolio are based on the concept of dollars at risk. This is the change in portfolio value arising from a one basis point change in yield. Within each of the portfolios, the dealing centers are required to maintain dollars-at-risk to within US$70,000 per basis point at all times. This limit applies to the aggregate position of the portfolio and to the position undertaken in each maturity bucket of the portfolio in order to control the amount of curve risk.
[187]
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The dollars-at-risk measure also forms the basis of the Value-atRisk (VaR) methodology, which the RBA has used since 1995 to estimate the consolidated exposure of the Banks foreign curr ency reserves to market risk. Though the overall limits to control market risk i.e., the discretionary trading bands around the benchmark are not defined in terms of VaR, the RBA has found that it nonetheless provides a useful tool for conveying informatio n about the overall portfolio exposure to senior management and staff involved in reserves management. [189]
Information System
All international transactions entered into by the RBA are processed through a main-frame electronic Global Trading and Settlement System (GTS). This system has been developed by an external software provider to their specifications. [190]
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CONCLUSION
State Bank of Pakistan is a unique financial institution in Pakistan as it is central bank of our country as well as a regulatory authority. 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. The rapid advancement in information technology, together with growing complexities of modern banking operations, has made the supervisory role more difficult and challenging. The institutional complexity is increasing, technical sophistication is improving and technical base of banking activities is expanding. All this requires the State Bank for endeavoring hard to keep pace with the fast-changing financial landscape o f the country. Accordingly, the out dated inspection techniques have been replaced with the new ones to have better inspection and supervision of the financial institutions. The banking activities are now being monitored through a system of off -site surveillance and on-site inspection and supervision. 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. To deepen and broaden financial markets as also to diversify the sources of credit, a number of non-bank financial institutions (NBFIs) were allowed to increase substantially. The State Bank has also been charged with the responsibilities of regulating and supervising of such institutions. Moreover, in order to safeguard the interest of ultimate users of the financial services, and to ensure the viability of institutions providing these services, the State Bank has issued a comprehensive set of Prudential Regulations (for commercial banks) and Rules of Business (for NBFIs). 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
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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 Banks jurisdiction. As from January, 1997, modarbas 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
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RECOMMENDATIONS
State Bank of Pakistan is performing well as all of its operations are well planned, organized and foolproof. However the micro finance activities ar e not still satisfactory and need improvements. Followings are suggestion to enhance the performance of State Bank of Pakistan. y At the very highest level, the decision-making AUTHORITY for the investment of reserves should be clearly defined. This hierarchy would normally be established by the Governor or Board of Directors and would include the overall objectives of reserves management. y Senior management needs to specify a strategic long-term portfolio that represents the best available trade -off between the different risks that the reserve management entity is facing. y There should be latitude for fund managers to deviate from benchmark in foreign placements as provided by the RBA and BCRP (Peru). y If SBP dont want to do so then it can transfer the authority to the treasurer to assign extra limit to their fund managers if they can provide the solid reason to invest so they can invest in the best interest. y The benchmarks should not short-term market expectations, but their appropriateness should be re viewed regularly. y Investment benchmarks are an important tool for assessing performance and accountability. Where managers should be permitted to deviate from the benchmark portfolio, performance and accountability will occur through the comparison of performance of the actual portfolio and benchmark. y Reserve management authorities should also subdivide their reserves portfolio into "tranches" according to liquidity and investment objectives and policy requirements. y The risk management framework should apply the same principles and measures to externally managed funds as it does to those managed internally.
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Sound risk management of externally managed funds begins with the careful selection of reputable external managers, which is the task of middle office.
It is necessary to establish a separate unit, or assign a position within the middle office, to enable the reserve management entity to fully monitor the activities of the external manager.
Risk exposures should be monitored continuously to determine whether exposures have been extended beyond acceptable limits. Monitoring is essential in identifying and limiting any cumulative losses associated with either deviation from the benchmark.
Reserve managers should be aware of potential financial losses and other consequences of the risk exposures they should be prepare to accept. Risk mitigation could involve the use of standardized documentation and the performance of periodic reviews of documentation.
The eligibility criteria for the selection of trading counterparties should be clearly defined
There should be a framework for determining the maximum credit exposures permitted with each counterparty.
Active risk management is good approach to mitigate the risk than passive risk management practices.
Use of e-CIB and its extension to cover data about mi cro finance borrowers of all MFIs should be allowed.
y y
Allocation of funds for credit lines in commercial banks for MFIs The most effective way of delivering institutional support is to focus on selected sectors with growth potential and make it time -limited.
SME policy must set up an effective mechanism to address the distinct requirements of micro (informal), small and medium firms in addition to meeting the general needs of the sector.
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GLOSSARY
Back office. The area of reserve management operations responsible for confirmation, settlement and in many cases, reconciliation of reserve management transactions. Benchmark. The mix of currencies, investment instruments, and duration that reflect the reserve managers tolerance for exposure to liquidity, credit, and market risks. Benchmark portfolio. A preset list of securities to be used to compare the performance of an actual portfolio. [3] A Repurchase Foreign exchange reserves. Those external available monetary for assets to that are for readily by direct the and controlled Credit risk. Probability of loss from a debtor's default. In banking, credit risk is a major factor in determination of interest rate on a loan: longer the term of loan, usually higher the interest rate.
[3]
Also
called
credit
exposure.
authorities
financing of payments imbalances, indirectly of regulating such in the magnitudes through markets exchange purposes. Front office. The area responsible for initiating investment transactions in accordance with approved delegations, limits, and benchmarks and the prompt and accurate entry of transactions into the investment management system. Futures contracts. A contractual agreement, generally made on the trading floor of a futures exchange, to imbalances exchange currency for other
Cash
repo.
agreement (also known as a repo or Sale and Repurchase Agreement) allows a borrower to use a financial security as collateral for a cash loan at a fixed rate of interest. In a repo, the borrower agrees to sell immediately a security to a lender and also agrees to buy the same security from the lender at a fixed price at some later date. A repo is equivalent to a cash transaction combined with a forward contract. [4]
and/or
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to buy or sell a particular commodity or financial instrument at a predetermined price in the future. Futures contracts detail the quality and quantity of the underlying asset; they are standardized to facilitate trading on a futures exchange. Some futures contracts may call for physical delivery of the asset, while others are settled in cash. [2] Middle office. Located between the front and back offices, the middle offices role is to monitor that all transactions have been performed properly, that risks are being monitored and limits observed, and that relevant information is available for management. Reserve management. The process by which public sector assets are managed in a manner that provides for the ready availability of funds, the prudent management of risks, and the generation of a reasonable return on the funds invested.
a letter of credit. The completion of this transaction requires a security lending agreement, which states, among other things, how long the loan lasts, what fee the lender receives, and the amount and type of collateral. [5] SDDS. established The by Special the Data
Dissemination Standard (SDDS) was International Monetary Fund (IMF/Fund) to guide members that have, or that might seek, access to international capital markets in the provision of their economic and financial data to the public. Both the General Data Dissemination System (GDDS) and the SDDS are expected to enhance the availability of timely and and comprehensive statistics
therefore contribute to the pursuit of sound macroeconomic policies; the SDDS is also expected to contribute to the improved
[6]
functioning
of
financial markets.
Stress Stock lending. The act of loaning a stock, derivative, or other security to an investor or firm. Securities lending requires the borrower to put up collateral, whether cash, security, or
Testing.
simulation
technique used on asset and liability portfolios to determine their reactions to different financial situations. Stress tests are also used to gauge how certain stressors will affect a
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or
industry.
They
are test
Value at Risk VaR. A technique used to estimate the probability of portfolio losses based on the statistical analysis of historical price trends and volatilities. firms and companies VaR is that are commonly used by banks, security involved in trading energy and othe r commodities. VaR is able to measure risk while it happens and is an important consideration when firms make trading or hedging decisions.
[2]
hypothetical scenarios. Stress testing is a useful method for determining how a portfolio will fare during a period of financial crisis. The Monte Carlo simulation is one of the most widely testing. used
[2]
methods
of
stress
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APPENDIX
Training certificate
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Letter of authorization
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69
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15,048
LIABILITIES Bills payable Current accounts of the Governments Current account with SBP Banking Services Corporation- a subsidiary Securities sold under agreement to repurchase 827,785 66,621,868 3,702,522
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Deposits of banks and financial institutions Other deposits and accounts Payable to the IMF Other liabilities Deferred liability - staff retirement benefits Capital grant rural finance resource centre Deferred liability - staff retirement benefits Deferred income Total liabilities Net assets REPRESENTED BY Share capital Allocation of special drawing rights of the IMF Reserves Unappropriated profit Unrealized appreciation on gold reserves Surplus on revaluation of property and equipment Minority interest
273,739,781 167,779,189 419,003,041 43,016,815 974,691,001 4,204,684 4,204,684 193,549 979,089,234 398,875,740
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BIBLIOGRAPHY
[156 -190] refers to the paragraph numbers from the Guidelines for foreign exchange reserves management: Accompanying document. y [1] International Reserves and Foreign Currency Liquidity IMF http://www.imf.org/external/np/sta/ir/IRProcessWeb/data/aus/eng/curaus.ht m#I y y y y y [2] http://www.investopedia.com/ [3] http://www.businessdictionary.com/ [4] http://en.wikipedia.org/wiki/Main_Page [5] http://financial-dictionary.thefreedictionary.com/ [6] Special Data Dissemination Standard IMF http://dsbb.imf.org/Pages/SDDS/Overview.aspx y [7] Wikipedia http://en.wikipedia.org/wiki/List_of countries by foreign exchange reserves y y [8] State Bank of Pakistan Website link: www.sbp.org.pk Guidelines for foreign exchange reserves management. http://www.bcentral.cl/eng/financial operations/pdf/Guidelines%20for%20Foreign%20Exchange%20Manageme nt%20FMI%202004.pdf y Guidelines for foreign exchange reserves management:
Accompanying document. http://www.bcentral.cl/eng/financial -operations/ y Issues in reserves Adequacy and Management. Link: http://www.imf.org/external/np/pdr/resad/2001/101501.pdf
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