ANL 23.10 Decreased By ▼ -0.70 (-2.94%)
ASC 16.10 Decreased By ▼ -0.30 (-1.83%)
ASL 22.25 Decreased By ▼ -0.40 (-1.77%)
BOP 8.55 Increased By ▲ 0.17 (2.03%)
BYCO 8.96 Increased By ▲ 0.15 (1.7%)
FCCL 18.07 Decreased By ▼ -0.40 (-2.17%)
FFBL 24.45 Decreased By ▼ -0.15 (-0.61%)
FFL 17.90 Decreased By ▼ -0.15 (-0.83%)
FNEL 8.40 Decreased By ▼ -0.14 (-1.64%)
GGGL 22.09 Decreased By ▼ -0.21 (-0.94%)
GGL 43.18 Decreased By ▼ -0.77 (-1.75%)
HUMNL 7.02 Decreased By ▼ -0.15 (-2.09%)
JSCL 20.85 Decreased By ▼ -0.73 (-3.38%)
KAPCO 37.90 Decreased By ▼ -0.20 (-0.52%)
KEL 3.61 Increased By ▲ 0.01 (0.28%)
MDTL 3.00 Decreased By ▼ -0.07 (-2.28%)
MLCF 36.30 Decreased By ▼ -0.18 (-0.49%)
NETSOL 153.30 Decreased By ▼ -4.45 (-2.82%)
PACE 5.98 Decreased By ▼ -0.03 (-0.5%)
PAEL 31.20 Decreased By ▼ -0.45 (-1.42%)
PIBTL 9.36 Decreased By ▼ -0.11 (-1.16%)
POWER 7.90 Decreased By ▼ -0.14 (-1.74%)
PRL 20.85 Decreased By ▼ -0.13 (-0.62%)
PTC 10.40 Increased By ▲ 0.02 (0.19%)
SILK 1.67 Decreased By ▼ -0.02 (-1.18%)
SNGP 43.19 Decreased By ▼ -0.56 (-1.28%)
TELE 22.06 Decreased By ▼ -0.64 (-2.82%)
TRG 173.50 Decreased By ▼ -2.41 (-1.37%)
UNITY 36.20 Decreased By ▼ -0.77 (-2.08%)
WTL 3.25 Decreased By ▼ -0.08 (-2.4%)
BR100 4,979 Decreased By ▼ -47.44 (-0.94%)
BR30 24,460 Decreased By ▼ -312.8 (-1.26%)
KSE100 46,636 Decreased By ▼ -284.38 (-0.61%)
KSE30 18,480 Decreased By ▼ -177.85 (-0.95%)

Coronavirus
VERY HIGH Source: covid.gov.pk
Pakistan Deaths
27,072
6824hr
Pakistan Cases
1,218,749
2,92824hr
5.08% positivity
Sindh
448,658
Punjab
419,423
Balochistan
32,707
Islamabad
103,720
KPK
170,391

In order to enhance the level of disbursement for housing finance under the Government's Mark-up Subsidy Scheme (G-MSS), the State Bank of Pakistan (SBP) has decided to penalize banks falling short of their targets with effect from July 31, 2021.

The central bank in its circular on Tuesday said that banks are expected to make all-out efforts to harness the full potential of the scheme.

In April 2021, the SBP assigned monthly mandatory targets of the number of housing units and amount of disbursements (G-MSS targets) to banks in proportion to share in total banking assets.

Housing finance: SBP sets mandatory targets for banks

“In view of foregoing, it has been decided that penalty will be imposed on banks falling short of their G-MSS targets w.e.f July 31, 2021, on both targets of the number of housing units and amount of disbursements,” read the circular.

SBP said that a baseline penalty will be charged on shortfall from cumulative targets till July 31, 2021, while a higher penalty will be charged on shortfall from targets of subsequent months.

This is the latest move by the central bank eyeing enhanced housing finance. Last month, the SBP asked banks to develop and deploy an income estimation model for the extension of low-cost housing finance to such applicants, in order to ease difficulties being faced by the general public in availing housing finance under G-MSS, commonly known as Mera Pakistan Mera Ghar.

Low-cost housing finance: SBP asks banks to develop, deploy income estimation models

Meanwhile, the SBP informed that the penalty charged on a bank will be adjusted after review of the bank’s efforts in terms of logins of applications, approvals of housing finance, results of SBP’s latest mystery shopping surveys, involvement of bank’s management, evidence of board information and support, sale, and marketing efforts, innovation in delivery channels, capacity building of staff and human resource (headcount) involved in G-MSS.

To assess efforts, State Bank will, if required, collect information from banks that fail to meet their targets.

Comments

Comments are closed.

1 Comment(s)
Sort By
Abrar Ahmed Jul 07, 2021 06:20pm
This is absolutely fascism. These banks were privatized by MNS, so that they stop giving loans for setting up sugar and cement plants to influential suckers of this nation, who would then default and get these loans written off. Now our sick PM IK, wants to dive backwards and get these banks to provide housing loans to PTI workers. I hope the banks will approach courts on this.
thumb_up Recommended (0)