Financial Institutions

Group Assignment Group Members

Mr. Zain Bajwa Mr. Salman Ahmed Mr. Muhammad Affan Mr. Junaid Iftikhar Mr. Faizan Khalid

Governor of state bank

The Governor of the Bank shall be the chief executive officer and shall, on behalf of the Central Board, direct and control the whole affairs of the Bank and shall exemplify all the commercial bank policies and prudential regulations on the back of Supreme Court. State bank governor is an autonomous figure; he is not affected by the government regulations and can withhold the state money according persisting economic and market situation. The governor as a part of central board should assure the secure monitory stability and soundness of financial system by formulating and monitoring the credit policy and in the determining of expansion of liquidity, take in to account the Federal Governments targets "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" The governor has a advisory as well as figure head role in the central board while directing in the central bank The governor of state bank is the adviser of the government financial issues also.

Deputy Governor of state bank

There is no specified job responsibilities in the act clause of state bank, the deputy governor will facilitate the central board and all the departmental hearings and issues and compliance towards the governor, and could also act as governor in the absence of him. The deputy governor of banking cluster holds the job duty of over examining all the activities related to the commercial banks and other financial institutions of Pakistani economy which includes the domestic as well as international institutions. The deputy governor operations have the job responsibility of policy supervisions of state bank only, the positions is least bothered with the commercial banks operations but more bothered about the state bank policies.

Chief economic adviser

Providing quality review of the economics on enforcement cases including mergers, abuse of dominance, anticompetitive agreements and bank enforcement cases. Provide expert input into economic policy formulation including competition and consumer policy. Communicate effectively with other parts of the financial setup to ensure that economic advice and Prepare economic policy papers and dialogue for the Organization for Economic Cooperation and Development (OECD) and other international organizations, like IMF and WB etc. Scope, tender and manage external research projects and to organize, project manager and communicate projects within the Economic Policy

There are two rounds of economic advisers the mp (monitory policy) and (policy developer) POLICY DEVELOPER (Research and Economic Policy Review) Research and economic policy review Explore new avenues for economic research focused on the Pakistans economy within and outside the department Writing technical and non-technical research papers to support policy making and promote dialogue Publishing SBP Research Bulletin (a bi-annual research journal) and SBPs Working Paper Series Organizing two seminar series: a weekly in-house Readers Forum and the occasional Pakistan and the World Economy Seminar Organizing an annual conference; Urdu translation of publications including annual and quarterly reports, monetary policy statements and financial stability review Liaising with international financial institutions (like IMF/World Bank), international organizations (like G-24/SAARCFINANCE) and providing services to major stakeholders Serving as SAARCFINANCE Country Cell for Pakistan Developing general equilibrium models suited for the Pakistans economy. Policy developer responsibilities included formulation of policies and regulations for banking sector, supervision of banking sector reforms, restructuring/reconstruction/revival & liquidation of banks/DFIs, licensing of banks, privatization of

state-owned financial institutions, interaction & coordination with multinational foreign financial institutions/central banks. He also attended matters relating to flow of credit, anti-money laundering, sick units, WTO and Deposit Insurance Scheme.

Monitory Policy (monitory policy and statistics review) Monitory policy and statistics The main responsibility of this division is to prepare forecasts of key macroeconomic variables such as inflation, exports, imports, exchange rate, money demand etc to support and enhance the forward looking aspect of monetary policy formulation. Based on these forecasts the division also prepares a one-year-ahead integrated system of macroeconomic accounts using financial programming approach, thus producing consistent projections, on monthly basis, of all the four sectors real, external, fiscal, and monetary of the economy.

Policy Formulation Division

This division is responsible for analyzing domestic and global developments related to the formulation and implementation of monetary policy. In particular, keeping in view the SBPs monetary policy stance, it closely monitors liquidity position in the market and related developments such as Open Market Operations (OMOs), T-bill auctions, movements in short-term interest rates, and behavior of nominal and real exchange rate.

Monetary and Credit Analysis Division

This division keeps track of major developments in various components of monetary aggregates such as government borrowings from the banking system, private sector credit, commodity operations, currency in circulation etc. The division is also responsible for coordinating with other departments of SBP to prepare extensive material for consultations with the IMF and review missions related with the recent Stand-by Arrangement (SBA). In addition, the division contributes in the quarterly working paper prepared for the Private Sector Credit Advisory Council (PSCAC) meetings and the background working paper for the quarterly meeting of the Monetary and Fiscal Policies Coordination Board (MFPCB).

Executive director (Distrito Federal)

Supervised and looked after the working of Banking Policy, Banking Supervision, Banking Inspection, Agricultural Credit and Islamic Banking Departments of the State Bank of Pakistan. His duties mainly focused on overall supervision and policy making in the field of banking. The executive director board should ensure that there is ongoing re-evaluation of the business strategy to ensure that it is compatible with their approved objectives, given changing internal and external forces. Ensure competent management Approving objectives strategies, plans and operating policies, standards and procedures Ensuring that the organizations operations are conducted prudently and within the framework of laws, regulations and guidelines as well as established policies and procedures Ensuring and monitoring that the organizations conduct its affairs with a high degree of integrity Reviewing the organizations business and operating performance Ensuring that the organizations is in control of it self

Agricultural credit and micro finance Operate as a focal point in SBP for all agri. finance related policies, programs and projects in consultation with Federal & Provincial Governments/ departments, banks, SBP-BSC Offices and farming community. Maintain an expert staff to study all questions of agricultural credit and be available for consultation by the federal government, provincial governments, provincial cooperative banks and other banking organizations. Assess credit requirements of the farm and non-farm sectors in rural areas in collaboration with provincial planning departments. Review the issues & challenges faced and developments taking place in agriculture finance and formulate policies for banks accordingly. Allocate annual indicative credit targets and monthly monitor the agri. loans disbursements against these targets. Compile & disseminate periodical data on agriculture finance for use & analysis by the bank, government and general public.

Infrastructure and SME finance

To work for improvements in Regulatory framework in the areas of infrastructure, housing and SME Finance through appropriate measures and special initiatives. To Plan and execute Capacity Building measures for Banks. To formulate & implement credit schemes on concessional basis to promote the exports. To take measures for developing secondary mortgage Lending & securitization for ensuring long-term funding/liquidity to the housing and infrastructure sectors. To monitor growth trends of sectors through collection of data/analysis, and dissemination of the same to stakeholders Promotion and Development of infrastructure, housing and SME finance. Capacity Building of Financial Institutions Promotion of Exports of the country Effective Coordination/Communication with key stakeholders.

Executive director (Business system group)

Banking inspection onsite

Banking Inspection Department (BID) is one of the core departments at SBP. Its mission is to strive for soundness & stability of the financial system and safeguard interest of stakeholders through proactive inspection, compatible with best international practices. BID plays a pivotal role in meeting SBPs main responsibility of supervising the financial institutions to maintain soundness of the system and protection of the interest of depositors, thereby ensuring public confidence in the system. In order to assess a financial institution, BID conducts regular on-site inspection of all scheduled banks inclusive of the foreign banks & DFIs. The regular on-site inspection is conducted on the basis of CAMELS Framework. (Capital, Asset Quality, Management, Earnings, Liquidity, Sensitivity and System & Controls). In continuation of the inspection process, discussions are held with external auditors to review banks internal controls, compliance with legislation & prudential standards and adequacy of provisions.

Offsite supervision and enforcement

The Monitoring Division is responsible for monitoring Liquidity Risk through overseeing Cash Reserve Requirement (CRR), Statutory Liquidity Requirement (SLR), Weekly Statement of Position, and NPLs related matters.

Ensuring continuous monitoring of CRR, SLR and other related information to assess the level and trends of liquidity risk in the market Ensuring that Weekly Statement of Position of all banks / DFIs is timely received, consolidated and sent to relevant stakeholders. Ensuring timely imposition of penalty on default in maintenance of CRR/SLR, non/late submission of returns/ mis-reporting of data. Ensuring that NPLs of banks and DFIs are properly monitored and disseminated. Compiling financial data of banks and DFIs, analyzing it developing recommendations and finalizing off-site surveillance reports as well as IRAF ratings and circulating these to designated recipients. Received from the respective banks for the forthcoming inspection. Reviewing violations of various laws / regulations pointed out in the inspection report and imposing monetary penalty where warranted. Reviewing appeals of bank regarding refund/ waiver of penalty, assessing the reason(s) presented by bank and other related issues and recommending refund/ waiver of penalty. DFI Exchange Department

Direct foreign exchange department holds all the responsibilities regarding remittances analysis, fluctuation of exchange rate and its effect on remittances and provide assistance to the outside investors on inflow of the investments.

Executive director (Basic Prudential regulations)

Banking policy and regulation

Banking Policy & Regulations Department (BPRD) of SBP has been assigned the task for endeavoring to achieve the regulatory objective through incorporating required improvements in the existing regulatory environment; besides responding to the need for adaptation of the international best

practices for our banking industry. The Banking Policy & Regulations Department ensures a close liaison with the Banking Surveillance, Off-site Supervision & Enforcement, Banking Inspection (On-site), SME & Microfinance Departments and all other departments of SBP to ensure that policies formulated by it are being implemented in letter and spirit.

Support and Liaising Division

The main responsibilities entrusted to this division are to have a close liaison with foreign central banks, International Financial Institution and trade bodies on issues of bilateral and multilateral interests, deal with the cases of unclaimed deposits, liaising with National Accountability Bureau (NAB), to recommend names of loan defaulters on requests of banks/DFIs for placement on Exit Control List (ECL) and respond to the queries of the government and legislative bodies

Complaints Redressed & Services Division

The division works to have the amicable settlement of various public grievances against the commercial banks and also performing the ex-officio functions of Deputy Custodian of the enemy property (Indian Banks). Moreover, the function of the division is to provide support services to BPRD in achieving its goals by providing logistic support in time and coordinating the administrative matters of the staff/officer in an efficient manner.

Banking surveillance

To ensure effective regulatory and supervisory oversight of Banks and DFIs. To assess and review, periodically, performance and future outlook of banking system. To monitor risk profiles of banks, to prescribe guidelines etc requiring banks and DFIs to put in place adequate Risk Management Systems Developing detailed understanding of New Basle Capital Accord. To ensure compliance with Basel Core Principles of Banking Supervision. To provide online collection & dissemination of credit related information to financial institutions in order to facilitate their credit appraisal process.

Islamic banking

Drive and Implement the Strategic Plan for Islamic banking industry Strengthen the existing regulatory framework for Islamic Banking Industry

Strengthen and broaden the scope and functioning of SBP Shariah Board through inclusion of more members and engaging of consultants of international repute Arrangement of IFSB events, particularly Council and Technical Committee meetings, along with the side events in Pakistan in November, 08 Leverage from/support the efforts of IFSB, IDB/IRTI, AAOIFI, IIFM and other international institutions for promotion of Islamic banking in Pakistan Coordination with BPRD regarding licensing of fully fledged Islamic Banks (IBs) and their branches and Islamic Banking Branches of conventional banks (IBBs) and formation of Islamic banking subsidiaries Coordination with BID for Shariah compliance inspection of IBIs and proper compliance of the observations/recommendations of inspection report (regarding Shariah Compliance) Utilizing SBP-SECP Joint Forum for the promotion of Islamic financial industry Support industry players in development of Shariah-compliant liquidity management instruments Utilizing the Shariah Advisor Forum for conflict resolution and for discussion on AAOIFI Shariah Standards for their adoption in Pakistan Conduct awareness programmed within and outside SBP to eliminate the misconceptions and to develop the confidence of the public about Islamic banking Publication of Islamic Banking Bulletin (IBB) and Islamic Banking System review (IBSR) and facilitate different departments in preparing various SBP publications Human resource capacity building in the Islamic banking industry through coordination with educational institutes

Executive director FM and RM

Domestic market and monitory management

Monitoring of Money and FX market activities Monetary Operations. Conducting auctions for raising short term and long-term domestic debt for the government. Providing funds to the financial institutions as lender of last resort. FX operations in the domestic FX market in accordance with monetary policy objectives. FX Cash Flow Management. FX Reserve Analysis & Reporting. Managing External Debt Repayments

International market and Investment Division

Responsible primarily for dealing with policy matters in the areas of export/ import transactions, issuance of Authorized Dealers license, Foreign Exchange Exposure Limits, Foreign Currency Accounts Scheme, Exchange Risk Cover Fee on Medium & Long Term Loans, analysis of proposals for raising loans / financial obligation by public sector organizations from international donor agencies, management of exchange allocations for public sector enterprises, travel, insurance, compliance / enforcement of inspection report findings of Authorized Dealers (banks) regarding foreign exchange and other allied matters etc. This division maintains contacts with all relevant institutions and stakeholders. This division primarily facilitates implementation and compliance of policy of the Government for investments in Pakistan and abroad. This is carried out by offering feedback on matters of varied natures, reviewing and updating of investment related policies and activities and operational management while executing transactions in the areas covering Investment abroad by residents, registration of foreign equity, royalty and technical Assistance, Independent Power Projects (IPPs), Foreign private debt including prepayment of private non-guaranteed debt, Oil & Gas payments, Profit remittance by foreign banks and branches of foreign companies, IT related payments etc. Policy formulation for establishing Exchange Companies (ECs) and ensuring adequate framework for licensing, operating, effective supervision & monitoring thereof are the prime responsibilities of Exchange Companies Division. These activities are carried out in close coordination with other the Field Offices of SBP-BSC and concerned government functionaries etc. It also organizes training and development activities for the respective financial institutions and concerned bodies.

Executive director FRM

Finance

Maintenance of books of accounts and preparation of financial statements of the Bank in accordance with the IAS, as adopted by the Bank.. Coordination and facilitation for Business planning and budgeting function in the Bank and periodic reporting to the management and to the Board. Management of Federal, Provincial, and District Governments Accounts. Policy & operations related coordination with MOF, CBR, AGPR, and other Govt. agencies.

Maintenance of foreign currency accounts/ investments and execution of International payments and receipts. Maintenance of accounts relating to International Organizations and Donor Agencies like IMF, IBRD, ADB, Asian Clearing Union (ACU) etc. Currency issuance and its overall management. The Finance Department is responsible to perform and manage the functions detailed on pre-page. It controls the working of the Offices under the provisions of Issue and Banking Department Manuals. Issue Department deals with management of currency operations, which includes designing, printing of currency notes and its circulation

Treasury and operations

Related with all the foreign reserves which state bank holds and over examines the forces which tend to control it and supports other departments to facilitate the inflation problems.

Executive director Operations

Payment System operations

Formulate payment systems policies and facilitate adoption of international best practices. Introduce developmental strategies for modern payment systems. Operate real time gross settlement (RTGS) system for fund transfers & securities transactions efficiently and securely. Provide oversight to payment systems operated by others i.e. NIFT, ECH etc. Provide SWIFT services to internal departments and SBP BSC (Bank) Offices. SBP Real Time Gross Settlement System (RTGS) Project

Information system and tech

To implement latest technology to keep SBP online with the domestic and international financial industry, and other stakeholders in order to promote efficiency and stability in the financial market. To provide appropriate technical solutions to business requirements and develop state of the art integrated systems that will facilitate internal and external stakeholders to acquire accurate information in the most efficient manner ISTD with its capabilities, methodologies, and experience aims at technological advancement in SBP, focusing on solutions that intend to reduce operating costs,

improve end-user performance, and meet overall business goals. Success and competitiveness in todays marketplace requires extra effort centered upon ISTDs value to provide high-quality solutions and services, effective communication, and smooth 24/7 operations. ISTD provides services and solutions to improve and strengthen SBPs technology portfolio and identify future requirements while catering to them as well. Besides providing these useful resources, ISTD focuses on safeguarding the information assets and relevant systems, critical to SBP, through its Security plans and policies.

Legal Service Department

The role of this office is provision of quality service in accordance with its functions, through close interaction with stake holders for easy accessibility to sound and critical advice outlining the shortest lawful path to goals of the client departments.

Executive director Special Assignment and HR

HR DEPT To transform the State Bank of Pakistan into an Employer of Choice this nurtures talent through its enabling culture Recruitment & Career Development Employees Benefits General Services & Admin Reward Management & PMIS Employee Relations & Trainings

Governor office
Internal audit and compliance

To transform Audit Department into a modern, efficient, proactive and I.T oriented Department, fully capable to conduct independent audit of all activities of SBP, aiming to add value, improve operational efficiency, risk management and internal control system in line with international best practices, for accomplishment of Banks mission. Financial & Operational Audit Division IT Audit Division Compliance Division Support Services Division

Examine and evaluate adequacy and effectiveness of the internal control systems in the Bank. Review the applications and effectiveness of risk management procedures and risk assessment methodologies in financial, operational and Corporate Governance aspects of the Banks activities. Review financial, automation technology and MIS. Review and ensure accuracy and reliability of accounting records and financial reports. Perform testing of both transactions and functioning of specific internal control procedures. Evaluate and ensure that approved policies and procedures meet legal and regulatory requirements. Examine and evaluate effectiveness of existing policies, procedures and give recommendations for improvements. Identify opportunities for cost savings in Bank operations and make recommendations. Examining those resources are acquired economically, used efficiently and safeguarded adequately. Review various reports of Banks subsidiaries, recommend improvements and provide policy guidelines.

Office of corporate secretary

Main role of the Office of the Corporate Secretary is to conduct Central Board meetings and to assist governor in the implementation of various policies in the Bank. In this capacity it is playing a pivotal role in the management and direction of the affairs and business of the Bank by conducting meetings of the central board very smoothly and consistently and conveying the decisions of the Board very efficiently and precisely to the management of the Bank. Office of the corporate secretary is secretariat for the Banks Central Board of Directors, and Management Team/ Monetary Policy Committee (MPC) The Corporate Secretary is the ex-officio Secretary of the Board of Directors of both the SBP and SBP Banking Services Corporation as also the Corporate Management Team.

The Office is responsible for recording and preservation of minutes of these high level policy making bodies. It also ensures compliance of the decisions of these meetings. The Office arranges official travels of Governor, Deputy Governors and other senior officials of the Bank, provides protocol to visiting dignitaries including representatives of World Bank, IMF and Governors of other Central Banks besides high-ranking Government officials.