One of the key objectives of The State Bank of Pakistan (SBP) is to ensure a robust and efficient financial sector, capable of efficiently catering to the needs of the general public, businesses and regulated institutions. The Banking Policy & Regulations Department (BPRD) is entrusted with a prime responsibility to achieve this overall objective of SBP by formulating and implementing an effective regulatory regime which is responsive to the local environment and international best practices.

Major functions performed by the BPRD include licensing of commercial banks, microfinance banks and Islamic banks, privatization of public sector banks, review and approval of mergers and acquisition schemes of banks and other regulated entities, formulation of corporate governance regime and fit and proper criteria for key executives and board of directors, formulation and continuous review of prudential regulations, capital adequacy policy and standards, banking and AML Laws, and dealing with various litigation cases.

Besides, the BPRD plays a key role in providing an enabling regulatory regime for the SBP’s different initiatives on financial inclusion, promotion of alternative delivery channels, innovation and product diversification. The department also coordinates with international agencies , foreign bank regulators and central banks , Federal and Provincial Governments, Law Enforcement Agencies, Securities & Exchange Commission, various trade bodies, and general public on key policy issues.