It
has been decided to reformulate policy for opening of
overseas branches and issue a new policy for establishment
of a subsidiary banking company outside Pakistan.
2.
The policy enclosed herewith
contains instructions relating to: (a) opening / shifting
/ closing / performance monitoring of overseas offices,
and establishment of subsidiary banking company outside
Pakistan.
3.
In view of the importance
of overseas operations in branch/subsidiary mode, it has
also been decided to include (a) Head of overseas operations
of a bank at head office level, (b) Country Head/Regional
Head (where a region is consisting of more than one foreign
countries), (c) CEO/Head of subsidiary banking company
outside Pakistan and (d) CEO of Joint Venture (where majority
stake is with the bank incorporated in Pakistan &
authority to appoint CEO) in the category of ‘Key
Executives’ for assessment of their ‘fitness
and propriety’ under BPRD Circular No.4 dated April
23, 2007. Accordingly, such appointments will be made
in accordance with ‘Fit & Proper Test’
as prescribed in the above referred circular and other
instructions issued from time to time. Banks/Islamic banks
will, however, seek State Bank’s prior approval
for such overseas appointments in the future. Regarding
existing heads of such overseas operations, banks are
advised to seek State Bank’s approval regarding
their ‘fitness and propriety’ within two months
from the date of issuance of this circular.
4.
This circular supersedes instructions as given in section
5.1 of Branch Licensing Policy issued vide BPRD Circular
No.15 dated October 12, 2007.
5. Henceforth
Banks/Islamic Banks/DFIs are advised to ensure strict
compliance with these instructions.
Please
acknowledge receipt.
Encl:
As above