Prudential Regulations for SME Financing Quiz

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Questions and Answers

What is the purpose of the State Bank of Pakistan Prudential Regulations for Small & Medium Enterprises Financing?

To oversee telecommunications infrastructure

To manage export earnings

To regulate the real estate sector

To ensure financial inclusion of SMEs for economic growth (correct)

Who is the Executive Director of Infrastructure, Housing & SME Finance Department at State Bank of Pakistan?

Dr. Mian Farooq Haq

Syed Samar Hasnain (correct)

Ms. Fatima Javaid

Mr. Akhtiar Ahmed

What is the telephone number of Ms. Fatima Javaid?

(+92-21) 99221574

(+92-21) 99221606

(+92-21) 99221951

(+92-21) 32455504 (correct)

What is the website address of State Bank of Pakistan?

<a href="http://www.sbp.org.pk">www.sbp.org.pk</a> Signup and view all the answers

What does the SME sector contribute significantly towards?

National GDP, employment generation, and export earnings Signup and view all the answers

What does the SME Specific Credit Policy require banks & DFIs to prepare?

A comprehensive SME Specific Credit Policy duly approved by their Board of Directors Signup and view all the answers

What does the Credit Policy for SME financing cover?

Procedures on loan administration, disbursement, monitoring, and recovery mechanism Signup and view all the answers

For loan size of upto Rs 2 million, what is the discretion of the banks & DFIs regarding insurance cover?

To obtain the insurance cover based on creditworthiness and financial strength of the borrower Signup and view all the answers

What does the Credit Policy specify regarding staff positions?

Major responsibilities and powers/authority relating to approval/sanctioning of financing limits Signup and view all the answers

What is the minimum loan size mentioned in the SME Specific Credit Policy for the discretion of obtaining insurance cover?

Rs 2 million Signup and view all the answers

What is the minimum loan size for which banks & DFIs have the discretion to obtain insurance cover for the hypothecated stock/ other securities?

Rs 2 million Signup and view all the answers

What is one of the key aspects that the SME Specific Credit Policy should cover for SME financing?

Loan administration, disbursement, monitoring, and recovery mechanism Signup and view all the answers

Who should approve the comprehensive SME Specific Credit Policy prepared by the banks & DFIs?

Board of Directors Signup and view all the answers

What should the Credit Policy give special mention to, in the context of Small Enterprises (SE) financing?

Specific characteristics and business conditions of Small Enterprises Signup and view all the answers

For loan size exceeding Rs 2 million, what is the discretion of banks & DFIs regarding insurance cover for hypothecated stock/ other securities?

Dependent on creditworthiness, past experience, and financial strength of the borrower Signup and view all the answers

Study Notes

State Bank of Pakistan Prudential Regulations for SME Financing

The purpose of the Prudential Regulations is to facilitate Small and Medium Enterprises (SMEs) financing.

Key Professionals

Ms. Fatima Javaid is the Executive Director of Infrastructure, Housing & SME Finance Department at State Bank of Pakistan.

Contact Information

The website address of State Bank of Pakistan is www.sbp.org.pk.

SME Sector Contributions

The SME sector contributes significantly towards the country's economy.

SME Specific Credit Policy

The SME Specific Credit Policy requires banks and Development Financial Institutions (DFIs) to prepare a comprehensive policy for SME financing.
The policy covers all aspects of SME financing, including loan sizes, insurance cover, and staff positions.
For loan sizes up to Rs 2 million, banks and DFIs have the discretion to decide on insurance cover.
The minimum loan size for which banks and DFIs have the discretion to obtain insurance cover for hypothecated stock/other securities is Rs 2 million.
One of the key aspects that the SME Specific Credit Policy should cover is the requirement for banks and DFIs to obtain insurance cover for hypothecated stock/other securities.
The comprehensive SME Specific Credit Policy should be approved by the bank's/DFI's board of directors.
The policy should give special mention to the financing needs of Small Enterprises (SEs).

Insurance Cover Discretion

For loan sizes exceeding Rs 2 million, banks and DFIs have the discretion to obtain insurance cover for hypothecated stock/other securities.

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Description

Test your knowledge about the State Bank of Pakistan's Prudential Regulations for Small & Medium Enterprises Financing with this quiz. Explore the key guidelines and requirements outlined in IH&SMEFD Circular No. 05 of 2022 dated March 29, 202