The Presidents/CEOs

All Banks

Dear Sirs/Madams,

GOVERNANCE FRAMEWORK FOR BANKS’ OVERSEAS OPERATIONS

1. 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.

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