Last day for exchanging old Rs 500 note

he State Bank of Pakistan has once again reminded the general public to exchange old Rs. 500 banknote as today September 30 is the last date for exchanging the old design bigger size note.

According to the notice issued by SBP on Thursday it is said that SBP and other banks will neither exchange or liable to pay any value to old design of Rs. 500 note after Friday, September 30,2011.

SBP has already asked all banks including MFBs to facilitate the public in exchanging Rs. 500 old design banknote within the stipulated deadline of September 30, 2011.

SBP decides to utilise network of 9,000 branches

The State Bank of Pakistan (SBP) has decided to fully utilise the large network of over 9,000 branches of commercial banks for distribution of fresh currency notes of all denominations to the general public during the Holy month of Ramazan.

For this purpose, SBP Banking Services Corporation (SBP BSC) has made elaborate arrangements for the supply of adequate quantity of fresh currency notes particularly of small denominations (Rs 10 to Rs 100) to commercial banks depending upon their branch network.

SBP issues licence to ICB

The State Bank of Pakistan (SBP) has issued the banking licence to ‘Industrial and Commercial Bank (ICB) of China Limited’ as the scheduled bank with effect from August 18, 2011.

In a notification, the SBP said, “State Bank of Pakistan (SBP), in exercise of the powers conferred on it by clause (a) of Sub-Section (2) of Section 37 of the SBP Act, 1956, is pleased to declare “Industrial and Commercial Bank of China Limited.” as a scheduled Bank with effect from August 18, 2011.”

The ICBC is a commercial bank. The bank provides personal banking services, including personal deposits, personal loans, bankcards, credit cards, fund investment and personal financing services.

SBP reduces Overnight Reverse-Repo rates

The State Bank of Pakistan (SBP)’s Overnight Reverse-Repo (Ceiling) rate has been reduced from 14 percent to 13.50 percent per annum from August 1, 2011. Referring to DMMD circular August 15, 2009 and another circular November 29, 2010, the SBP Overnight Repo facility will be available at 10.50 percent per annum.

This will serve as the ‘Floor’ for the Interest Rate corridor as announced by the above referenced circular, the SBP circular said. Hence, the Floor and Ceiling levels for the interest rate corridor are 10.50 percent and 13.50 percent per annum respectively.

From: Dailytimes

SBP to release mark-up rate subsidy for FATA, PATA

The State Bank of Pakistan (SBP) announced the release of third installment of mark-up rate subsidy on business loans for the period from January 1 to June 30, 2011 under the Prime Minister’s Fiscal Relief Package to rehabilitate the economic life in Khyber Pakhtunkhwa, Federally Administered Tribal Area (FATA) and Provincially Administered Tribal Area (PATA).

Duly completed claims for reimbursement of mark-up rate subsidy for the said period may be submitted separately for textile sector and other eligible sectors to SBP-BSC (Bank), Peshawar up-to August 31, 2011

From: Dailytimes

SBP realigns functions of EPD to supervise exchange companies

The State Bank of Pakistan (SBP) has with immediate effect realigned the functions of its Exchange Policy Department (EPD).

This has been done in order to regulate, supervise and monitor the affairs of the Exchange Companies (category A and B) in an efficient and more effective manner. With this realignment, Off-site Monitoring, Supervision, Compliance, Enforcement and related functions shall now be dealt by the Off-site Supervision and Enforcement Department (OSED) of the SBP, according to F E circular 4 of July 20, 2011.

SBP appoints eleven primary dealers for FY 2011-12

The State Bank of Pakistan (SBP) has appointed eleven Primary Dealers for the next financial year which include JS Bank Limited, Habib Bank Limited, National Bank of Pakistan, Faysal Bank Limited, Standard Chartered Bank (Pakistan) Limited, United Bank Limited, Citibank NA, NIB Bank Limited, Pak Oman Investment Co Ltd, MCB Bank Limited and Bank Alfalah Limited.

Applications were invited for selection of Primary Dealers for the financial year 2011-12 from all banks, investment banks, development finance institutions and listed brokerage houses and upon evaluation of each applicant’s performance, the institutions mentioned above have been selected as Primary Dealers for FY 2011-12, according to a circular Monday. Three primary dealers JS Bank Limited, Habib Bank Limited and National Bank of Pakistan were the top three performers during FY 2010-11, the circular added

Need for development of robust Shariah compliant risk management infrastructure

There is need for the development of a robust Shariah compliant risk management infrastructure in Pakistan’s Islamic banking industry.

It will enable both the Islamic banks and their clients to mitigate genuine business risks, said Yaseen Anwar Deputy Governor, State Bank of Pakistan (SBP).

Inaugurating a workshop on ‘Hedging in Islamic Finance and Master Hedging Agreement,’ organised by International Islamic Financial Market (IIFM) in collaboration with the SBP.

From: Daily Times

Forex reserves rise to $17.523bn

Country’s foreign exchange reserves increased to $17.523 billion in the week ending on June 18, 2011, showing a slight increase of $6 million, compared to $17.517 billion last week, data released by State Bank of Pakistan said Thursday.

The reserves held by the State Bank of Pakistan reached to $14.107 million, as compared to $14.085 billion last week, however the reserves held by banks other than SBP declined to 3.415 billion as compared to $3.432 billion last week.

From: Daily Times

SBP extends limits under EFS, IERS schemes

The State Bank of Pakistan (SBP) has extended the limits sanctioned by banks to individual exporters under Part-II of the Export Finance Scheme (EFS) /Islamic Export Refinance Scheme (IERS) for the year 2010-11 up to August 31, 2011.

It may be pointed out here that export refinance limits sanctioned in favour of banks for the year 2010-11 are due to expire on June 30, 2011. Under the present system, exporters are required to submit EE-1 statement for the year 2010-11, duly verified by the Foreign Exchange Operations Department of SBP-BSC, latest by August 31, 2011. Therefore, banks would not be in a position to work out revised entitlement of limits for each exporter under Part-II of the Scheme for the year 2011-12.