KARACHI: The State Bank of Pakistan (SBP) has asked banks, MFBs and DFIs to provide Key Fact Statements (KFSs) to all their prospective customers from April 1, 2021 for comparison and decision making.
Effective disclosure is considered a fundamental component of the Financial Consumer Protection regime. Standardized disclosures as Key Fact Statements (KFSs) increase consumer comprehension about a banking product's affordability and risks, leading to better decision-making. Similarly, KFS also minimizes the risks of ineffective disclosures on part of the banks by standardizing the information provided to the consumer.
In order to promote Responsible Banking Conduct and Fair Treatment of Consumers (FTC), SBP always recognizes the importance of standardized disclosures. Accordingly, KFS for consumer credit products and Most Important Document (MID) for third party products have already been issued by the SBP.
Copyright Business Recorder, 2020