The
Presidents/ CEOs
All Microfinance Banks
Dear Sir(s),
Revised Prudential Regulations
for Microfinance Banks (MFBs)
It
has been decided to revise the Prudential Regulations (PRs)
for Microfinance Banks in view of the changing dynamics of
the microfinance sector in Pakistan. These revisions have
been made after carrying out a holistic review of existing
regulatory framework and to promote sustainable growth of
microfinance in the country.
2. The revised Prudential Regulations are structured into
four main categories; Governance (G), Operations/Consumer
Protection (O), Anti Money Laundering- AML/ Combating Financing
to Terrorism- CFT (M), and Risk (R). Furthermore, various
instructions and directives issued by SBP from time to time
have also been consolidated with PRs for consistency and convenience.
Certain instructions in the existing PRs for MFBs have been
removed as these are already covered under Microfinance Institutions
(MFI) Ordinance 2001 and shall therefore remain binding on
MFBs.
3. These regulations are being issued in exercise of the powers
conferred under Section 22 of the MFI Ordinance 2001. Any
non-compliance or circumvention will attract penal actions.
The revised Prudential Regulations do not supersede directives
and instructions issued by SBP in the matters not covered
under these regulations.
4. The revised Prudential Regulations for MFBs shall come
into force with immediate effect except where specifically
mentioned otherwise.
5.
Please acknowledge receipt.. Encl:
Revised Prudential Regulations for MFBs.
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