It
has come to notice of State Bank of Pakistan that banks/NBFIs
reject loan requests and even in some cases do not process
the loan applications of customers if CIB report of one of
the group companies shows overdue on the plea that SBP’s Prudential
Regulations/Rules of Business does not allow them to accommodate
such customers.
2.
In this regard it is clarified that role of CIB is
to provide a consolidated picture of a borrower as of a given
date based on the information/data supplied by the banks/NBFIs.
The Prudential Regulation No. 18 & NBFI Rule of Business
No. 23 does not bind a financial institution to turn down
the application for financial assistance solely on the basis
of over due reported in the CIB report. The regulation clearly
stipulates that while due weightage may be given to CIB report
the bank/NBFI can consider extending financial accommodation
as it may deem fit if the requested credit facility or transaction
is viable as an acceptable credit risk.
3.
Banks/NBFIs are, therefore, advised to take due care
in processing of application for financial accommodation in
a broader perspective.
Please
acknowledge receipt.
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