structure & functions of state bank of pakistan
TRANSCRIPT
STRUCTURE & FUNCTIONS OF STATE BANK OF PAKISTAN
بینک دولت پاکستان
INTRODUCTIONA universal monetary institute in modern times
Constitutes the apex of the money structure of an economy.
Acts as the leader of the money market .
Supervises, controls and regulates the activities of commercial banks.
DEFINITION
“Institute charged with the responsibility of managing the expansion and contraction of the volume of money in the interest of the general public welfare.”
GOVERNOR
The principal officer of the SBP is the Governor. The current Governor of State Bank of Pakistan is “Syed Salim Raza” who took over from “Dr. Shamshad” in January 2009 for a three year term. He is a retired professional from Citibank and was the Chairman of Pakistan Business Council.
ADMINISTRATIVE ORGANIZATIONTo run and monitor the bank it is divided into three parts.
CENTRAL BOARD OF DIRECTORS (High Level of Management)
CENTRAL DIRECTORS (Middle Level of Management)
FIELD OFFICE (Low Level of Management)
CENTRAL BOARD OF DIRECTORSThis board comprises :
GOVERNOR 1DEPUTY GOVERNOR 1DIRECTORS 8
TOTAL 10
Governor, Deputy Governor and seven directors are nominated by Federal Government. The either director is the head of ministry of Finance.
CENTRAL DIRECTORSThe central directorate consist of fifteen
department and every department is headed by a director.
Public Relationship and Secretary’s department are directly accountable to deputy Governor.
Research & Statistic department work under economics advisor.
The remaining eleven department work under four executive director.
FIELD OFFICE
The Head office of the bank is in Karachi.
SHARE CAPITALAt the time of its establishment the “State Bank
of Pakistan” was semi-government.
Its 51% shares were held by the government and 49% by the general public.
At the time of Nationalization in 1974 its paid up capital was Rs. 30 Million.
IMPORTANCE
To control credit.
To issue Paper currency.
To iron out economic crisis.
To implement Monetary and financial Policies.
FUNCTIONS OF SBP
Issuer of Paper Currency
Bankers to Government
Banker’s To Bank
Exchange Rate
Management
Non-traditional Role
Bank’s Supervision
Implement the Monetary Policy
Acts as a Clearing House
CREDIT CONTROL MEASURES
GENERAL CREDIT CONTROLS SELECTIVE CREDIT CONTROLS
Bank Rate
Open market operations
Cash Reserve Ratio
Statutory Liquidity Ratio
Ceiling on Credit
Margin Requirements
Directives
Moral Suasion
CONCLUSIONo State Bank of Pakistan is not a Profit
Hunting Institution. Profit is its secondary objective. Its Primary function is to stimulate economic growth of the Country.
o It reveals complete Transparency, & Prudence in Nations Economy.
o So it clearly Justifies the Need & Importance of The State Bank of Pakistan .
FEDERAL URDU UNIVERSITY
Department Of Economics
(2009-2010)
Course Instructor : Miss NargisMEF Semester I
Prepared By:Mohammad Sarwat JawaidMohsin Toufeeq
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