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

THANK YOU !!!!