15 Questions
What is the purpose of the State Bank of Pakistan Prudential Regulations for Small & Medium Enterprises Financing?
To ensure financial inclusion of SMEs for economic growth
Who is the Executive Director of Infrastructure, Housing & SME Finance Department at State Bank of Pakistan?
Syed Samar Hasnain
What is the telephone number of Ms. Fatima Javaid?
(+92-21) 32455504
What does the SME sector contribute significantly towards?
National GDP, employment generation, and export earnings
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
What does the Credit Policy for SME financing cover?
Procedures on loan administration, disbursement, monitoring, and recovery mechanism
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
What does the Credit Policy specify regarding staff positions?
Major responsibilities and powers/authority relating to approval/sanctioning of financing limits
What is the minimum loan size mentioned in the SME Specific Credit Policy for the discretion of obtaining insurance cover?
Rs 2 million
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
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
Who should approve the comprehensive SME Specific Credit Policy prepared by the banks & DFIs?
Board of Directors
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
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
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.
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
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