ANL 28.52 No Change ▼ 0.00 (0%)
ASC 16.68 Decreased By ▼ -0.03 (-0.18%)
ASL 23.76 Increased By ▲ 0.01 (0.04%)
AVN 94.24 Increased By ▲ 0.34 (0.36%)
BOP 9.47 No Change ▼ 0.00 (0%)
BYCO 9.56 Decreased By ▼ -0.02 (-0.21%)
DGKC 110.50 No Change ▼ 0.00 (0%)
EPCL 47.45 No Change ▼ 0.00 (0%)
FCCL 21.28 Increased By ▲ 0.13 (0.61%)
FFBL 27.97 No Change ▼ 0.00 (0%)
FFL 19.28 Increased By ▲ 0.01 (0.05%)
HASCOL 14.31 No Change ▼ 0.00 (0%)
HUBC 86.00 No Change ▼ 0.00 (0%)
HUMNL 7.30 Increased By ▲ 0.04 (0.55%)
JSCL 31.47 No Change ▼ 0.00 (0%)
KAPCO 40.73 No Change ▼ 0.00 (0%)
KEL 4.11 Increased By ▲ 0.01 (0.24%)
LOTCHEM 16.20 Increased By ▲ 0.01 (0.06%)
MLCF 43.02 No Change ▼ 0.00 (0%)
PAEL 39.86 Increased By ▲ 0.01 (0.03%)
PIBTL 12.91 Increased By ▲ 0.01 (0.08%)
POWER 11.40 No Change ▼ 0.00 (0%)
PPL 93.29 No Change ▼ 0.00 (0%)
PRL 23.80 No Change ▼ 0.00 (0%)
PTC 9.30 No Change ▼ 0.00 (0%)
SILK 1.20 No Change ▼ 0.00 (0%)
SNGP 44.33 Decreased By ▼ -0.02 (-0.05%)
TRG 108.48 No Change ▼ 0.00 (0%)
UNITY 33.15 No Change ▼ 0.00 (0%)
WTL 1.12 No Change ▼ 0.00 (0%)
BR100 4,856 Decreased By ▼ -9.94 (-0.2%)
BR30 24,724 Decreased By ▼ -96.85 (-0.39%)
KSE100 45,868 Decreased By ▼ -116.42 (-0.25%)
KSE30 19,061 Decreased By ▼ -87.18 (-0.46%)
Print

Responsibilities of BoDs: SBP amends Prudential Regulations G-1(B)

KARACHI: The State Bank of Pakistan (SBP) has amended Prudential Regulations for Corporate & Commercial Banking,...
05 Dec 2020

KARACHI: The State Bank of Pakistan (SBP) has amended Prudential Regulations for Corporate & Commercial Banking, regarding "Responsibilities of the Board of Directors." According to the SBP, Para 10 of Regulation G-1(B) allows the Board to form specialized committees with well-defined objectives, authorities and tenure. It further provides that such committees of the Board should neither indulge in day-today affairs/operations of the bank nor involve, enjoy any credit approval authority for transaction/limits. Now the SBP has been decided to add an additional Para 10A in Regulation G-1(B) to read as under: "10A. The Board of those banks which are operating as subsidiary of a foreign bank and joint venture DFIs, if deemed absolutely necessary, may delegate authority to a relevant committee of the Board to review/approve credit facilities over and above minimum threshold as determined by the Board of Directors. Further, such Board Committee must be chaired by a director having relevant experience to review/approve credit facilities. However, the management shall not be absolved of its responsibility of properly scrutinizing the credit proposals in terms of Bank's/DFI's approved credit policy and managing such credit on day to day basis."

The SBP has advised all concerned Banks/DFIs to follow the amended regulation in letter and spirit. Any deviation or non-compliance of the same shall attract punitive action under the relevant provisions of the Banking Companies Ordinance, 1962.

Copyright Business Recorder, 2020