ISLAMABAD: The National Assembly on Thursday unanimously passed `The Banking Companies (Amendment) Bill, 2010' to provide matching tools to bank regulators for cooperative measures with a view to maintain financial stability.
The bill moved by Minister of State for Foreign Affairs Hina Rabbani Khar on behalf of Minister for Finance Dr Abdul Hafeez Shaikh, was unanimously passed by the House without any amendment.
Zahid Hamid of Pakistan Muslim League-Nawaz withdrew his amendments, saying that the bill was unanimously passed by the Senate.
It was said in the statement of objects and reasons of the bill that due to worldwide financial crises, the ever changing dimensions of banking business continue to create newer challenges and risks for bank depositors, regulators and financial system as a whole. Therefore, it is necessary to provide matching tools to bank regulators for cooperative measures with the view to maintain financial stability.
The proposed amendments in the Banking Companies Ordinance, 1962 are in the context of strengthening necessary tool of bank regulation and supervision to safeguard against various risks. The amendments would enable the State Bank of Pakistan to change management in banks, impose losses on shareholders by writing down their capital, intervene and take control of banks, appoint administrators to manage banks and restructure banks when symptoms of crises are determined, it said.
The National Assembly also unanimously approved ‘The Federal Board of Revenue (Amendment) Bill 2010’ as passed by the Senate with an aim to empower the Federal Board of Revenue (FBR) to establish a Welfare Foundation and fund relating thereto for its retired and serving regular employees.
According to the statement of objects and reasons, the bill will improve overall FBR efficiency of the working and its field formations by specifying performance standards of the employees and giving incentives on the observance of such standards.
The FBR overall efficiency will enhance with the establishment of a policy board in the composition of which representation to the public representatives and private sector is given.
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