SBP Jobs State Bank of Pakistan 2020 Jobs. The State Bank of Pakistan (SBP) is incorporated under the State Bank of Pakistan Act, 1956, which gives the Bank the authority to function as the central bank of the country.
The SBP Act mandates the Bank to regulate the monetary and credit system of Pakistan and to foster its growth in the best national interest with a view to securing monetary stability and fuller utilization of the country’s productive resources.
Subsidiaries of the SBP
The SBP holds “three” fully owned subsidiaries to augment its functions. These are:
Established under the SBP-BSC Ordinance 2001, SBP-BSC supports SBP in performing functions such as handling of currency and credit management, facilitating the inter-bank settlement system, and sale/purchase of savings instruments of the Government on behalf of Central Directorate of National Savings.
SBP-BSC also collects revenue and makes payments for and on behalf of the Government. It also carries out operational work relating to development finance, management of public debt, foreign exchange operations and export refinance.
The Board of Directors of SBP-BSC, chaired by the Governor SBP, comprises of all members of the Central Board of SBP and the Managing Director of SBP-BSC.
SBP-BSC consists of 16 field offices in Pakistan with the head office in Karachi.
National Institute of Banking and Finance (NIBAF)
NIBAF is the training arm of SBP, providing executive development trainings to new inductees and various levels of SBP employees.
The subsidiary also conducts international courses on central and commercial banking in collaboration with the federal Government. Furthermore, NIBAF offers training to SBP-BSC and other financial institutions.
NIBAF is incorporated under Companies Ordinance, 1984 and has a separate Board of Directors.
NIBAF is located in Islamabad with an office in Karachi.
Deposit Protection Corporation (DPC)
Deposit Protection Corporation (DPC) has been established as a wholly owned subsidiary of SBP under the DPC Act 2016.
Upon commencement, this entity will be responsible to provide protection of deposits of member financial institutions operating in Pakistan. The objective of DPC is to compensate the depositors to the extent of protected deposits in the event of failure of a member Financial Institution.
The limit of protected deposits shall be determined by DPC and will be announced in due course.
For the purpose of protecting depositors of Islamic Banks and branches, a separate Shariah compliant mechanism of deposit protection shall be put in place.
Under the State Bank of Pakistan Order 1948, the Bank was charged with the duty to “regulate the issue of Bank notes and keeping of reserves with a view to securing monetary stability in Pakistan and generally to operate the currency and credit system of the country to its advantage”.
The scope of the Bank’s operations was considerably widened in the State Bank of Pakistan Act 1956, which required the Bank to “regulate the monetary and credit system of Pakistan and to foster its growth in the best national interest with a view to securing monetary stability and fuller utilization of the country’s productive resources”.
Under financial sector reforms, the State Bank of Pakistan was granted autonomy in February 1994. On 21st January, 1997, this autonomy was further strengthened by issuing three Amendment Ordinances (which were approved by the Parliament in May, 1997) namely, State Bank of Pakistan Act, 1956, Banking Companies Ordinance, 1962 and Banks Nationalization Act, 1974.
Functions of SBP
Like a Central Bank in any developing country, State Bank of Pakistan performs both the traditional and developmental functions to achieve macro-economic goals.
The traditional functions, which are generally performed by central banks almost all over the world, may be classified into two groups:
(a) the primary functions including issue of notes, regulation and supervision of the financial system, bankers’ bank, lender of the last resort, banker to Government, and conduct of monetary policy, and
(b) the secondary functions including the agency functions like management of public debt, management of foreign exchange, etc., and other functions like advising the government on policy matters and maintaining close relationships with international financial institutions.
REGULATION OF LIQUIDITY
Being the Central Bank of the country, State Bank of Pakistan has been entrusted with the responsibility to formulate and conduct monetary and credit policy in a manner consistent with the Government’s targets for growth and inflation and the recommendations of the Monetary and Fiscal Policies Co-ordination Board with respect to macro-economic policy objectives.
The basic objective underlying its functions is two-fold i.e. the maintenance of monetary stability, thereby leading towards the stability in the domestic prices, as well as the promotion of economic growth.
The Board of Directors
The State Bank of Pakistan is governed by an independent Board of Directors, which is responsible for the general superintendence and direction of the affairs of the Bank.
The Board is chaired by the Governor SBP and comprises of 8 non-executive Directors and Secretary Finance to the Federal Government. Non-executives Directors of the Board are appointed by the Federal Government for a 3 year term.
Monetary Policy Committee of the State Bank of Pakistan is an independent body responsible to formulate the monetary policy of the SBP. More notably, MPC determines the policy interest rate of the SBP and approves the Monetary Policy Statement.
MPC consists of ten members: the Governor (Chairman), three members of the Board, nominated by the SBP Board, three senior executives of the SBP, nominated by the Governor, and
Three External Members (economists) appointed by the Federal Government on recommendation of the SBP Board. The External Members are appointed for a term of three years.
The Governor SBP is the Chief Executive Officer of the Bank and manages the affairs of the Bank on behalf of the Board. The Governor is appointed by the President of Pakistan for a term of three years which is renewable once.
He is assisted by one or more Deputy Governors appointed by the Federal Government for a period not exceeding five years.
In addition to the Governor and Deputy Governors, the management hierarchy includes Executive Directors, Chief Economic Adviser, and Directors of various departments.