The Presidents/Chief Executive Officers,
REVISED PRUDENTIAL REGULATIONS FOR CONSUMER FINANCING
In order to align the Prudential Regulations for Consumer Financing with changing business environment and international best practices; the State Bank of Pakistan, in consultation with the banks/DFIs, has revised the Prudential Regulations for Consumer Financing. These regulations prescribe minimum benchmarks in critical risk and operational areas and aim to promote consumer financing in sustainable and fair manner while ensuring the financial stability of the banks/DFIs.
These regulations do not supersede the directives and instructions issued by State Bank of Pakistan in respect of areas which are not covered under enclosed regulations. Banks/DFIs which are compliant with the revised regulations, as introduced herewith, shall follow the same with immediate effect. However, banks/DFIs which require implementation time for new and amended regulations shall achieve compliance within six months of issuance of these regulations. Such banks/DFIs are advised to present regulation wise time-bound compliance plan to their Board of Directors in next three months.
Banks/DFIs are advised to follow the enclosed Prudential Regulations in letter and spirit. Any deviation or non-compliance of the same shall attract punitive action under the relevant provisions of the Banking Companies Ordinance, 1962.
All other instructions on the matter will, however, remain unchanged.
Please acknowledge receipt.
Encl: Revised Prudential Regulations for Consumer Financing