State Bank of Pakistan (SBP) Thursday asked banks and DFIs not to acquire any consultancy or advisory service from a bankrupt company. According to BPRD Circular No 13 of 2014 issued on December 11, 2014, the environment of integrity, honesty and financial discipline is crucial for the financial institutions in order to maintain their image and confidence in general public.
In order to further strengthen and enhance the regime of financial integrity, SBP has decided that all banks/DFIs/MFBs should ensure the following minimum requirements at the time of acquiring of any services, consultancy or advisory service from any company/firm/individual:
-- That they have not been adjudged an insolvent,
-- No execution of decree or order of any court remains unsatisfied against them,
-- They have not compounded with the creditors
-- They have not been convicted of a financial crime
According to SBP, these instructions are issued in terms of section 41 of the BCO, 1962 and in this regard, all banks/MFBs/DFIs should devise and implement policy and procedures duly approved by their board of directors, w.e.f. 31-01-2015.
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