In order to keep up with changing dynamics
of foreign environment under which banks
operate and to further strengthen the governance,
risk management & compliance practices
for banks’ overseas operations, SBP
has developed a ‘Governance Framework’
for banks’ overseas operations. The
framework is aimed at strengthening banks’
capacity to understand, identify and manage
various risks posed by its foreign operations.
2. The Board and senior management of a
bank shall institute robust governance,
risk management and monitoring mechanisms
to conduct a comprehensive risk, financial
& operational performance evaluation
of its overseas operations in each jurisdiction
on periodic basis.
3. The policy shall be applicable with
immediate effect except as where mentioned
otherwise. The banks are advised to ensure
strict compliance of the Framework in letter
and spirit and within given timelines.
Please acknowledge receipt.