SBP with law enforcers ready to face future challenges posed to banks

MULTAN: State Bank of Pakistan (SBP) Deputy Governor Shamsul Hasan said the central bank in collaboration with National Accountability Bureau (NAB) and Federal Investigation Agency (FIA)ready to face challenges posed to financial intuitions in future.

Speaking at a seminar titled " Operational Prudence in Finance Intuitions " at the SBP auditorium here on Thursday, he said that technology had completely disrupted the landscape of banking system. He stated that what banking system would be quite different tomorrow what it was today, adding that NAB and FIA were better trained to check forgeries about banks.

About credit and its risks, the deputy governor SBP informed that in willful defaults and business defaults, elements of corruption and negligence played a vital role. It was matter of pride for all the SBP was named the best central bank of the world because it had highly competent professionals, Shams said and added that it was centre of excellence. He recommended the bankers to advise customers regarding risks involved in todays banking to safeguard them from any untoward situation.

Shams appreciated NAB for selecting a key topic to be touched upon in this connection. Addressing the seminar, Additional DG FIA Basharat Mehmood Shahzad shed light in depth on E-banking ATM and Credit cards frauds. He stressed the need for improving coordination between banks an law enforcers to stop these type of frauds adding that all the stakeholders should play their roles more efficiently in this context.

Unit Head of Compliance, assurances and Internal Control MCB Asim Khan Suri discussed in length about parallel banking, concepts, lacking and remedial actions.

Quoting the example of Double Shah, he informed that lacking supervision, control in banking and non-compliance of SoPs resulted in parallel banking. He suggested senior bankers not to rely much on tellers, CSOs, PBAs, GBOs and BMs besides creating awareness among customers regarding un natural profits. Executive Director SBP, Syed Irfan Ali spoke on common violations of Prudential Regulations. About wilful laon defaults and malpractices, NAB Bank Expert, Khalid Rafiq said that lending was the core function of the bank adding that financing was the test of a bank.

He stated that Non Performing Loan (NPL) was the biggest issue of the banks these days as it reduced the lending capacity of the bank. Security in this connection, he said, was very important and it included movable, immovable and paper security.

Earlier in his welcome address, DG NAB Multan, Atiq-ur-Rehman said that it was an established fact that well-structured and efficient financial institutions were the prerequisite for economic growth. Finical intuitions and markets fostered economic growth facilitating the exchange of goods and services by providing simple and fast payment services, mobilizing and pooling savings from a large number of investors, he stated.

He said that the objectives the seminar was aimed at sensitizing banking community on vigilance, supervision and official obligation to assist NAB in combating corruption and to highlight grey areas, procedural lapses and common irregularities giving rise to corrupt practices.

BZU VC, Dr Tahir Amin, Acting VC NMU, Dr Ejaz Masood, Dean MNSUA, Dr Shafqat Saeed, Registrar BZU, Dr Omer Chaudhary were prominent among large number of bankers who attended the seminar.