PRESENTED BY

Arooj Saeed Haider Ali Baig Syed Razi Abbas Syed Billal Kazmi Muhammad Muslim

Presented by:
HAIDER ALI BAIG

Presented by:
SYED BILLAL KAZMI

 CURRENCY ISSUANCE IN PAKISTAN

The first and one of the most valuable functions that roots the state bank of Pakistan is issuance of currency, reason of a single body to issue the currency Confidence level: Sound monetary structure: Banks lending: Controlling power: Uniform notes

Currency Principle: In order to maintain the position of paper money it should be backed by 100% gold reserve for the conversion of notes when required.

Bank Principle: Banking principle there is no need of keeping reserve of gold and silver for the notes issuance. The banks are the regulatory body in note issuing keeping in mind the requirements of the commerce in the country.

Automation of Currency Operations A computerized process to issue and to maintain accounting of notes is used in all Issue Offices of SBP. New Design Banknotes To reduce the threats such as forged banknotes of various denominations state Bank has introduced new designed banknote with new security features, international standards is one of the measures for this problem. Security features of Bank notes Visible Features Invisible Features

Establishment of Forensic Laboratory

The examination of counterfeit currency notes Forensic Laboratory are referred to, by the SBP as its department is less equipped with advance testing abilities.

Estimation of demand for Bank Notes

Estimation of demand of Bank notes takes place on with the calculation of the Growth rate of the economy, Expected inflation rate, Soiled notes replacement, Demonetizations and stock position.

Presented by :
SYED RAZI ABBAS

SBP being the central bank in Pakistan commercial banks working in Pakistan deal obtaining loans or rediscounting bill of exchange. Scheduled banks 5% cash reserves foreign banks 7% cash reserves the agricultural and industrial sector loans by the SBP under the Agricultural Financing Scheme

SBP also lends securities SBP cannot sell or purchase shares Working for the development of the economy

Commercial banks inside a country the central bank acts as clearing house Functions are performed by NIFT Reports are then handed over to the SBP SBP as well as NIFT perform the following functions: Liquidity position Interbank transactions Harmful and unwanted competition Defer payments of commercials

Monetary aspects Government actions Rural as well as agricultural credit, Credit control Savings and plans economic stability Chalking out economic stability. Balance of payments, capital flights investments and foreign payments

Assists the government in speedy growth of the economy Appointing the governor, director Government of Pakistan reserves the right to suspend or scrutinize the SBP if they feel the need to check up on the financial dealing of the bank.

Commercial banks are in trouble and need to be bailed out via cash SBP is always there to provide them with loans to take care of their inter-bank dealing some type of security helps commercial banks maintain a steadfast reputation within the banking industry.

Economy to become successful credit transactions prove to be the most effective long term basis with the help of interest on the loans. Pakistan being a third world country is in dire need of long-term investment Credit transactions to economic prosperity.

Some of the tools used by the SBP in order to control credit expansion are as follows: Open Market Operations Bank Rate Policy Changes in Reserve Ratio Changes in Margin Requirements Changes in Liquidity Ratio Moral Persuasion

Presented by:
MUHAMMAD MUSLIM

SBP have to fosters the economic stability and brings the prosperity Identify the major problems and gives strategic solutions Defining the road maps for the banking industry and related functions SBP provides trained and educated employees generated from NIBAF SBP takes instant steps to pull the country out of instabilities like recession, depression or in the hard times.

Credit Investments are the major fiscal and economical variables Credit Investments are managed by Credit Institutions under the supervision of SBP. Such Institutions are very useful for various companies and sectors who need all short and long term loan, and required credit Like: ZTBL, ICP, NIT, HBFC, NDFC

SBP is confronting from many great challenges

Like the lack of skilled staff, Spoiled banking structure Undeveloped banking habits

SBP is continuously working for the betterment and advancement of the banking culture and exclusively pay attention towards growth of the banking world. SBP has a foolproof system of inspection to keep safe the standard of the banking system and compelled other banks to strictly follow the banking rules and regulations. Critically examines the depositors security and check the depositors interests are being protected.

SBP has an important responsibility to control the value of rupee externally SBP important factor and vision is to maintain the exchange rate and avoid fluctuation in the country. Floating Exchange Rate System The rate is determined by the demand and supply in foreign exchange market through this system.

Presented by:
AROOJ

In 1948, the state Bank was encouraged with the obligation to "control the issue of Bank notes and maintaining reserves to protect and secure financial loyalty in Pakistan Banks operations were broadly mentioned in 1956 act, according to which Bank requires to control and regulate the monetary and credit system of Pakistan

To achieve macro-economic goals ,State Bank of Pakistan performs both traditional and developmental functions.

TRADITIONAL FUNCTIONS

They are further categorize into : primary and secondary functions

(a) The Primary Functions:

Issue of notes Regulation and management of the monetary system

Lender of the last resort, Banker to Government, Manner of monetary policy

(b) The Secondary Functions:

Organization of public debt,

Management of foreign exchange,

Advising policy matters to government Establishing good relationships with international financial institutions

Development of financial framework Institutionalization of savings and investment

Provision of training facilities to bankers

Provision of credit to precedence sectors.

Actively contributing towards

islamization of the banking system

OTHER RESPONSIBILITIES

Manage to regulate the quantity and the path of flow of credit to different uses and sectors Regulation and supervision of financial system is one of the important responsibilities and state bank ensure in terms of its : reliability loyalty protecting the interests of depositors.

The banking actions are now being monitored through a system of off-site observation and on-site assessment

Off-site observation includes routinely

returns received from the different banks

on-site inspection is undertaken by the State

Bank in the premises of the concerned banks when required.

The State Bank obligations recommend guide lines for : classification of short-term and long-term loan facilities, prohibit criminal use of banking for illegal activities, set down rules for dividend payment prohibit them to enlarge new laon to defaulters of old loans

 State Bank is also fulfilling responsibility to regulate foreign exchange reserves of the country according to Foreign Exchange Act 1947.

AN Investment Committee is performing the task of taking into deliberation the overall : - Intensity of reserves, - Maturities and payment obligations, - Takes judgment to make investment of surplus

Training Department in state bank is also envisaged in the Training Polices and Programmes (TPP) and is accordingly approved by the Board.

Training Managers will be responsible for identifying the training requirement needs of the SBP staff .The suitable managers will be in-charge of organizing the logistic support for foreign
Training, Invitation, Exchange

of information, Secretariat function for the Foreign Training Selection Committee,

The training programs have been designed and offered to officers in the areas of :
Banking

Supervision, Applied Accounting, Commercial Banking and Communication Skills.

This opportunity will lead officers to improve their skills and update themselves with the pace of changes in areas of banking.