The Managing Director of SBP banking services corporation Mr. Qasim Nawaz while inaugurating a two-day Banking exhibition at Gujranwala has stated that “State Bank of Pakistan is committed to use every mean to make banking services available to all segments of the society.”
Mr. Qasim Nawaz briefed about the other initiatives taken by SBP to facilitate the various fields of economy especially in agriculture, SME and microfinance which includes the ongoing review of plans and policies made for the promotion of these sectors and generating business activities for banking industry. The Central Banking is also undertaking review of the prudential regulations for the development of Small and Medium Enterprises (SMEs). He added that this would help SMEs to access banking credit and as a result increase their part in bank loans. An example of the above is the introduction of Credit Guarantee Scheme for SME to share credit risk with banks with the objective of increasing focus towards lending to neglected areas. Around 2,000 accounts are already opened under the said scheme.
Rs 925 million have been disbursed to SMEs; SBP has shared risk worth Rs 392.5 million with the financial institutions. Mr. Nawaz also said that introduction of Microfinance credit guarantee scheme is also under review with the experts for resolution of liquidity problems with microfinance banks and institutions. 2.8 billion Worth facilities are being provided to ten Micro finance banks and institutions by the commercial banks. SBP BSC has provided guarantee cover of Rs805 million by commercial banks to MFB and MFIs.
Moreover, cash training programs are arranged for SME and agriculture credit officers of the banks. Other capacity building programs for financial institutions are in progress. For assessing credit worthiness of small borrowers, financial institutions will be given access to CIB – MFIs. He said that proper strategy will be established with all the key stake holders of the country. The banking exhibition in Gujranwala would prove an important milestone for providing access to the finance to small entrepreneurs.