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 two fully owned subsidiaries to augment its functions. These are:
SBP-Banking Services Corporation (SBP-BSC)
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.
Notification of Board of Directors