…….towards a better banking system
Our Vision
To transform Banking Surveillance Department into a highly professional and dynamic department fully equipped to proactively and effectively supervise the banking system.
Our Mission
To promote soundness and stability of the Banking System through proactive and effective supervision
Introduction
Health of an economy depends on the degree of safety and stability of its banking and financial system. A sound, stable and robust banking and financial system is a pre-requisite for economic well being of a country and its populace. In Pakistan, ensuring the stability and soundness of the banking system is a statutory responsibility of State Bank of Pakistan. The banking supervision departments viz. Banking Policy and Regulations Department (BP&RD), Banking Surveillance Department (BSD), Off-Site Supervision and Enforcement Department (OSSED) and Banking Inspection Department (BID) have been assigned this important function to work jointly and severally to ensure the soundness of individual banks and of overall banking industry.
The Banking Surveillance Department is responsible to supervise financial institutions in the country. The department ensures effective adherence to regulatory and supervisory policies, monitors risk profiles, evaluate operating performance of individual banks/DFIs and the industry as a whole while issuing guidelines for managing various types of risks. It also ensures that banks are adequately capitalized and have policies and systems in place to assess various risks. The department is also responsible for the implementation of the Basel II Accord in Pakistan. The function and activities of Credit Information Bureau (CIB) also falls within the domain of Banking Surveillance Department. The CIB collect credit data, under section 25A of the Banking Companies Ordinance 1962, maintain its database and disseminate credit information to financial institutions online to facilitate their credit appraisal process. The main objectives/key result areas of the Department are; -
Main Objectives/Key Result Areas:
- To ensure effective regulatory and supervisory oversight of Banks and DFIs.
- To assess and review, periodically, performance and future outlook of banking system.
- To monitor risk profiles of banks, to prescribe guidelines etc requiring banks and DFIs to put in place adequate Risk Management Systems
- Developing detailed understanding of New Basle Capital Accord.
- To ensure compliance with Basel Core Principles of Banking Supervision.
- To provide online collection & dissemination of credit related information to financial institutions in order to facilitate their credit appraisal process.
Department Structure:
The Department has been continuously improving its operations so that it remains effective in the face of changing practices of the banking and financial system. To undertake above stated variety of functions, the Department has been structured into different divisions. A brief description of each is given hereunder: -
-
Risk Management & Analysis Division (RMD)
This Division is responsible for monitoring different risks faced/assumed by individual Banks/DFIs and prescribes policies/issues guidelines etc for managing/mitigating these risks. Inter alia it also monitors the capital adequacy of banks to ensure that the banks remain adequately capitalized. It also monitors operational risks and reviews of operational policies of commercial banks and lays down disclosure requirements and monitors compliance thereof.
- Basel Accord & Core Principles Division (BA&CPD)
The primary objective of this division is to implement the Basel II Accord in the banking sector. This involves participating in capacity building of the banking industry to understand, adapt and implement the Basel Accord and then to also monitor compliance in this regard. The other objective is to ensure compliance with Basel Core principles of banking Supervision..
-
Banking Sector Assessment Studies Division (BSASD)
This division is primarily responsible for reviewing and assessing, on periodical basis, the banking system performance and its future outlook. The division also conducts various stress testing exercises to assess the resilience of the banking sector to various shocks.
-
Credit Information Bureau (CIB)
The Credit Information Bureau collects and disseminates credit data from and to financial institutions to facilitate their credit appraisal process. It maintains database of all borrowers who avail credit facilities from financial institutions and provides online access to financial institutions to submit monthly credit data and to generate CIB reports.
-
Coordination & Administration Unit (CAU)
The primary objective of this division is to provide necessary support services to the Department’s staff and officers to facilitate them in effective and efficient discharge of assigned functions/ responsibilities. It coordinates with other departments and external organizations for timely provision of support services and technological assistance. It is also responsible for receipt/dispatch of correspondence and records of inward and outward mail, besides preparing a consolidated business plan for the department and its monitoring and follow up for effective implementation. The Division also coordinates on various training activities for imparting training to the staff/officers.
While having an optimum correlation, the divisions are specialized in their work assignments. They are functionally interdependent and have certain degree of interaction with other supervisory departments namely BID, OSSED and BP&RD. This much coordination among supervisory departments attempts to ensure stable and efficient banking system.
Basel II Implementation
Conference on Risk Management 
Workshop/Conference/Seminar
|