presentation of state bank pakistan
TRANSCRIPT
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PRESENTED BY :
Arooj SaeedHaider Ali Baig
Syed Razi Abbas
Syed Billal Kazmi
Muhammad Muslim
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Presented by:HAIDER ALI BAIG
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Presented by:SYED BILLAL KAZMI
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CURRENCY ISSUANCE IN PAKISTANThe first and one of the most valuable functions that rootsthe state bank of Pakistan is issuance of currency, reason of
a single body to issue the currency Confidence level: Sound monetary structure:Banks lending: Controlling power: Uniform notes
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Currency Principle:In order to maintain the position of paper money it
should be backed by 100% gold reserve for theconversion of notes when required.
Bank Principle:Banking principle there is no need of keeping
reserve of gold and silver for the notes issuance. The
banks are the regulatory body in note issuing keepingin mind the requirements of the commerce in thecountry.
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Automation of Currency OperationsA computerized process to issue and to maintainaccounting of notes is used in all Issue Offices of SBP.
New Design BanknotesTo reduce the threats such as forged banknotes of variousdenominations state Bank has introduced new designedbanknote with new security features, internationalstandards is one of the measures for this problem.
Security features of Bank notes Visible Features Invisible Features
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Establishment of Forensic Laboratory The examination of counterfeit currency notes
Forensic Laboratory are referred to, by the SBP as itsdepartment is less equipped with advance testing
abilities. Estimation of demand for Bank Notes
Estimation of demand of Bank notes takes place onwith the calculation of the
Growth rate of the economy, Expected inflation rate,
Soiled notes replacement,
Demonetizations and stock position.
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Presented by :SYED RAZI ABBAS
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SBP being the central bank in Pakistan commercial banks working in Pakistan
deal
obtaining loans or rediscounting bill ofexchange.
Scheduled banks 5% cash reserves
foreign banks 7% cash reserves
the agricultural and industrial sector loans by the SBP under the Agricultural
Financing Scheme
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SBP also lends securities
SBP cannot sell or purchase shares
Working for the development of theeconomy
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Commercial banks inside a country the centralbank acts as clearing house
Functions are performed by NIFT
Reports are then handed over to the SBP SBP as well as NIFT perform the following
functions:
Liquidity position
Interbank transactions Harmful and unwanted competition
Defer payments of commercials
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Monetary aspects
Government actions
Rural as well as agricultural credit,
Credit control
Savings and plans economic stability
Chalking out economic stability.
Balance of payments, capital flightsinvestments and foreign payments
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Assists the government in speedy growth ofthe economy
Appointing the governor, director
Government of Pakistan reserves the rightto suspend or scrutinize the SBP if they feelthe need to check up on the financial
dealing of the bank.
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Commercial banks are in trouble and need tobe bailed out via cash
SBP is always there to provide them with loans
to take care of their inter-bank dealing some type of security
helps commercial banks maintain a steadfast
reputation within the banking industry.
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Economy to become successful credittransactions prove to be the most effective longterm basis with the help of interest on the
loans. Pakistan being a third world country is in dire
need of long-term investment
Credit transactions to economic prosperity.
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Some of the tools used by the SBP in orderto control credit expansion are as follows:
Open Market Operations
Bank Rate Policy Changes in Reserve Ratio
Changes in Margin Requirements
Changes in Liquidity Ratio
Moral Persuasion
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Presented by:MUHAMMAD MUSLIM
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SBP have to fosters the economic stability andbrings the prosperity
Identify the major problems and gives strategic
solutions Defining the road maps for the banking
industry and related functions
SBP provides trained and educated employees
generated from NIBAF SBP takes instant steps to pull the country out
of instabilities like recession, depression or inthe hard times.
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Credit Investments are the major fiscal andeconomical variables
Credit Investments are managed by Credit
Institutions under the supervision of SBP. Such Institutions are very useful for various
companies and sectors who need all short andlong term loan, and required credit
Like: ZTBL, ICP, NIT, HBFC, NDFC
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SBP is confronting from many great challenges Like the lack of skilled staff,
Spoiled banking structure
Undeveloped banking habits
SBP is continuously working for the betterment andadvancement of the banking culture and exclusivelypay attention towards growth of the banking world.
SBP has a foolproof system of inspection to keep safethe standard of the banking system and compelled
other banks to strictly follow the banking rules andregulations.
Critically examines the depositors security and checkthe depositors interests are being protected.
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SBP has an important responsibility to controlthe value of rupee externally
SBP important factor and vision is to maintain
the exchange rate and avoid fluctuation in thecountry.
Floating Exchange Rate System
The rate is determined by the demand andsupply in foreign exchange market throughthis system.
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Presented by:AROOJ
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In 1948, the state Bank was encouraged withthe obligation to "control the issue of Banknotes and maintaining reserves to protect and
secure financial loyalty in Pakistan
Banks operations were broadly mentioned in1956 act, according to which Bank requires tocontrol and regulate the monetary and creditsystem of Pakistan
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To achieve macro-economic goals ,State Bank
of Pakistan performs both traditional anddevelopmental functions.
TRADITIONAL FUNCTIONS They are further categorize into : primary and
secondary functions
(a) The Primary Functions:
Issue of notes
Regulation and management of the monetarysystem
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Lender of the last resort, Banker to Government,
Manner of monetary policy
(b) The Secondary Functions:
Organization of public debt,
Management of foreign exchange,
Advising policy matters to government
Establishing good relationships with international
financial institutions
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Development of financial framework
Institutionalization of savings and
investment
Provision of training facilities to bankers
Provision of credit to precedence sectors.
Actively contributing towards
islamization of the banking system
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OTHER RESPONSIBILITIES
Manage to regulate the quantity and the pathof flow of credit to different uses and sectors
Regulation and supervision of financial systemis one of the important responsibilities andstate bank ensure in terms of its :
reliability loyalty
protecting the interests of depositors.
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The banking actions are now being monitoredthrough a system of off-site observation and
on-site assessment
Off-site observation includes routinelyreturns received from the different banks
on-site inspection is undertaken by the StateBank in the premises of the concerned bankswhen required.
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The State Bank obligations recommend guide
lines for : classification of short-term and long-term loan
facilities,
prohibit criminal use of banking for illegalactivities,
set down rules for dividend payment
prohibit them to enlarge new laon to
defaulters of old loans
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State Bank is also fulfilling responsibility toregulate foreign exchange reserves of the countryaccording to Foreign Exchange Act 1947.
AN Investment Committee is performing thetask of taking into deliberation the overall :
- Intensity of reserves,
- Maturities and payment obligations,- Takes judgment to make investment of
surplus
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Training Department in state bank is also envisagedin the Training Polices and Programmes (TPP) and isaccordingly approved by the Board.
Training Managers will be responsible for identifying
the training requirement needs of the SBP staff .Thesuitable managers will be in-charge of organizing thelogistic support for foreign
Training,Invitation,Exchange of information,Secretariat function for the Foreign Training SelectionCommittee,
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The training programs have been designed andoffered to officers in the areas of :Banking Supervision,
Applied Accounting, Commercial Banking and Communication Skills.
This opportunity will lead officers to improve
their skills and update themselves with the paceof changes in areas of banking.
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