The Presidents/Chief Executives

All Microfinance Banks

Dear Sir/Madam,

Revised Prudential Regulations (PRs) for Microfinance Banks

1. In order to align the Prudential Regulations for Microfinance Banks (MFBs) with changing business environment, the State Bank of Pakistan has revised the Prudential Regulations for MFBs.
2. These regulations prescribe minimum benchmarks in Governance, Operations, Consumer Protection and Risk Management to ensure financial stability and sustainability of the Microfinance Banks. The instructions issued by SBP from time to time have also been included in the revised PRs.
3. MFBs shall continue to comply with the directives and instructions of the SBP not covered under these regulations. These regulations shall come into force with immediate effect except where specifically mentioned otherwise. Any deviation or non-compliance of the same shall attract enforcement actions under the relevant legal and regulatory provisions.