PAKISTAN: New Prudential Regulations for MF Banks

Prudential regulations for Microfinance Banks (MFBs) in Pakistan, as of March 2007

This document contains regulations applicable to all Microfinance Banks licensed by the State Bank of Pakistan. It addresses the following topics:

* Minimum capital requirements;
* Exposure to contingent liabilities;
* Liquidity and reserves;
* Deposit protection;
* Prohibited transactions;
* Maximum loan size and maximum exposure per individual;
* Asset classification and provisioning;
* Audits;
* Operational policies;
* Criteria for Board members and the Chief Executive;
* Statistical submission requirements;
* Definition of “poor person”;
* Credit ratings.


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