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Central Banking in Pakistan: State Bank of Pakistan
Central Banking in Pakistan: State Bank of Pakistan
Contents
What you can expect from this presentation
Part 1: Introduction to Central Banking and SBP
The Concept of a Central Bank State Bank of Pakistan (SBP) Historical Background of SBP Establishment of SBP Organization of SBP Independence of SBP
Central Bank
Explaining the Concept of a Central Bank
A central bank is a bank which constitutes the apex of the monetary and banking structure of its country and which performs, best it can in the national economic interest. It usually issues the currency, regulates the money supply, and controls the interest rates in a country.
Central Bank
Explaining the Concept of a Central Bank
Central banks often also oversee the commercial banking system of their respective countries. A central bank possesses a monopoly on printing the national currency, which usually serves as the nation's legal tender. Examples include the Federal Reserve of the United States, the People's Bank of China, and State Bank of Pakistan.
Organogram of SBP
Organizational Structure of SBP
Board of Directors
Governor
Deputy Governor Banking Director Islamic Banking Head Treasury Department Executive Director FRM
Director CMAD
Director Audit
Director Research
Director Eco PD
Director ISD
Director ACD
Director BPD
Director Accounts
Director Statistics
Director BSD
Director EPD
Director BID
Director PSD
Organization of SBP
Organizational Structure of SBP
Board of Directors
The Central Board consists of nine members:
The Governor (who is Chairman) The Secretary Finance Division, Government of Pakistan & Seven Directors including one Director from each Province (nominated by the Federal Government)
Organization of SBP
Organizational Structure of SBP
Management
The management of the Bank consists
Governor (one or more) Deputy Governors Executive Directors Economic Advisor Directors of various departments.
The Governor is the Chief Executive Officer and directs and controls the whole affairs of the Bank on behalf the Central Board. The Federal Government appoints Deputy Governors.
Independence of SBP
The Right of SBP to Work Without Intervention
The State Bank of Pakistan (amendment) Act. 1997 states, No govt. or quasi-governmental body or agency shall issue directives directly or indirectly, to any banking company or any other any other financial institution regulated by the Bank. This law ensures that State Bank can work independently with governmental intervention.
Traditional Functions
NonTraditional Functions
Primary Functions
Secondary Functions
This way each set of regulations serves the relevant area in the best possible way. A brief introduction to these is given in upcoming slides.
Scheduled Banks are entitled to certain facilities from the State Bank and in return they have some obligations to it.