Development of an inclusive financial system in the country that
could ensure access to financial services to all segments/sectors
of the economy is an important strategic objective of SBP. The
establishment of Development Finance Group (DFG) in SBP in the
recent past is aimed at creating the necessary institutional capacity
in SBP to achieve the strategic objective. While the DFG is engaged
in enhancing its capacity to catalyze and facilitate expansion
of financial services in un-banked/under-banked areas/sectors,
the group based in Karachi, has no presence in the field to continuously
interact with grassroots level stakeholders and monitor banks’
progress (at region/district level) to develop and expand their
development finance capacity. The SBP (BSC) however has presence
in 16 key areas/regions across the country with immense potential
for growth of development finance.
The
proposed Development Finance Support Department (DFSD) in the
BSC is aimed at using the BSC filed offices across the country
to augment the DFG capacity and role for connecting the un-banked/under-banked
areas/sectors with the country’s financial markets. The
DFSD though will be based in BSC Head Office Karachi (HOK), it
will gradually establish a Division/Unit in each of the 16 field
offices. The Divisions/Units in the field offices would report
functionally to DFSD and administratively to the respective CM.
KEY
FUNCTIONS
The following may be the key functions of DFSD; (all these functions
would be undertaken using the BSC field offices network):
Monitoring
I. To coordinate
and interact with DFG and banks to have region-wise and branch
wise plans/targets for financing to SMEs, Micro Enterprises (MEs)
, low cost housing and farming/rural communities/persons;
II.
To monitor banks’ performance towards achievement of regional
and branch-wise targets of development finance using the BSC field
offices;
III.
To collect regional and/or branch-wise data for monitoring banks’
performance as well as regional trends in growth and development
of SMEs, Micro and Rural Finance;
IV.
To develop and maintain province, region and district
wise development finance database; this will help us optimally
target our resources to increase outreach of financial services
in un-banked/under-banked areas/sectors;
V.
To monitor banks’ progress towards building and
enhancing their retail capacity (in terms of branch network, IT
systems, human resources) to expand their development finance
outreach in different regions of the country;
Awareness and Information Dissemination
VI.
To organize programs/field visits/workshops/seminars in consultation
with DFG to create awareness amongst the target population viz.
the SMEs, MEs and farming community about financial services being
offered by banks and financial institutions; (the training and
field visits programs undertaken by ACD, being the field activity,
could be transferred to the department; the capacity at field
offices would be built gradually to undertake such programs on
more frequent basis);
VII.
To develop linkages with SMEDA, representatives/associations of
SMEs and MEs, farming community, chambers of commerce and agriculture,
trade bodies for better and wider dissemination of SBP Development
Finance policies and approach;
VIII.
To use the Credit Advisory Committees established at
field offices as a platform and forum for consultation with stakeholders
on key policy, regulatory and operational issues faced by the
sectors. The role of Credit Advisory Committees established at
field offices would be strengthened; the committees’ secretariats
in the field offices would be merged with Development Finance
Divisions/units to be established in each office that will operate
under direct supervision of the department.
IX.
To develop linkages with provincial and District governments,
agricultural research and extension departments to explore synergies
between their poverty alleviation and information dissemination
programs and the department’s goal for increasing outreach
of financial services in un-banked/under-banked areas/sectors;
X.
To facilitate linkages/partnerships between technical and vocational
institutes and banks/MFBs for imparting technical/vocational training
to the prospective clients of banks/MFBs on cost sharing basis;
XI.
To develop linkages with universities and colleges in the region
to initiate development finance courses/specializations/majors
to cater to the growing demand for development finance
Research
& Surveys
XII.
To conduct/arrange/sponsor regional surveys/empirical studies
on key and burning issues relating expansion, growth and impact
of development finance. (Linkages with research and educational
institutions will be developed for the purpose)
