Money, Finance and Banking Blog in Pakistan
Posts tagged Risk Management
Arif Habib Investments Cautions General Public
Jan 20th
Dawn newspaper on January 19, 2010 carried an advertisement from Arif Habib Investment cautioning general public against fraudulent activities of some imposters. The notice informs that some unauthorized persons have approached investors to obtain blank or bearer cheques for investment in mutual funds.
The notices informs general public that cheque / pay order / demand draft should only be issued with “payees account only” in favor of the trustee of the respective fund as mentioned in the offering documents of funds.
It added that financial instrument (i.e. cheque / pay order / demand draft) should only be handed over to the authorized More >
Governor SBP Warns Against Narrow Credit Base
Jun 20th
Governor State Bank of Pakistan Salim Raza has said that only 0.5 per cent big borrowers, with loan size of more than Rs10 million, are enjoying 72 per cent of banks’ loans, a situation that is highly risky for banks.
He was delivering a keynote address at a prize distribution ceremony of the Institute of Bankers Pakistan (IBP) in Karachi on June 18, 2009.
Fraud and Forgery Cases Rising in Banking Sector
Jun 14th
Operational risk framework’s importance has increased manifold due to heightened volatility, increased frequency of unforeseen incidents, and the current global financial turbulence.
State Bank of Pakistan (SBP) has mentioned following to be the major issues related to operational risk faced by banks:
- People risk – Lack of awareness / proper training programs / non-following of policies & procedural manuals
- System risk – Heavy reliance on systems, system down time, minor / major bugs, miscalculations etc.
- Internal / external events – Fire incidents, political disruptions, earthquakes, floods etc.
- Fraud & forgeries
Rapid changes in technology – while having provided automation, increased efficiency and source of competitive advantage – have increased More >
President Seeks Helps from Banks and Entrepreneurs
Jun 13th
President Asif Ali Zardari on Wednesday called upon the entrepreneurs from banking and financial sector to assist the government in its fight against poverty.
“Winning the war against militancy demands that we also win the war against poverty”, the President told a group of prominent bankers adding “in this war the bankers and banking sector has a vital role to play”.
President offered full support of the government to the banking sector, but at the same asked the bankers to serve as an engine for new enterprises and new jobs.
The President said that due to difficult but prudent measures adopted by the More >
SBP Extends Date for Reporting Consumer Rating in e-CIB
Jun 4th
State Bank of Pakistan (SBP) through its BSD Circular Letter 04 on June 2, 2009 has extended the date for reporting the consumer rating / scoring in the e-CIB system to December 31, 2009.
Earlier SBP had asked Banks and DFIs to establish their systems for carrying out Facility Ratings through its BSD Circular No. 08 on October 29, 2007. They were advised to submit a plan by March 31, 2008 mentioning therein the detail of the identified activities with timelines for establishing the system for Facility Ratings.
Date for establishment of internal credit rating system was then extended on June 24, 2008 and again More >
