Prudential Regulations for SME Financing Quiz

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.

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