MICROCAPITAL BRIEF: State Bank of Pakistan (SBP), World Bank (WB) to Develop National Financial Inclusion Strategy for Pakistan

The State Bank of Pakistan (SBP), the nation’s central banking authority, and the World Bank (WB), a US-based multilateral institution, reportedly have announced a partnership to develop a National Financial Inclusion Strategy (NFIS) for Pakistan. While the country has a population of approximately 180 million, it has “6 million borrowers and 35 million deposits accounts” [1]. The NFIS is intended to help increase these numbers by setting goals for financial inclusion, identifying steps to achieve these goals and clearly defining roles for different stakeholders such as banks, government agencies and donors. Furthermore, NFIS will create monitoring mechanisms to track the progress of financial inclusion initiatives.

SBP reported total assets worth PKR 4,040 trillion (USD 41.2 billion) as of June 2013. The World Bank Group operates in approximately 120 countries as of July 2013 and has an active grant and loan portfolio of USD 173 billion as of June 2012.

By Juan Blanco, Research Associate

About State Bank of Pakistan (SBP)

Established in 1956, the State Bank of Pakistan (SBP) is the nation’s central banking authority. SBP is responsible for regulating and supervising the nation’s financial system, carrying out monetary policy and managing public debt. In addition, SBP is also in charge of developing the financial framework of the country, providing credit to “priority sectors” and furthering the Islamization of the banking system. As of June 30, 2013, SBP reported total assets worth PKR 4,040 trillion (USD 41.2 billion). SBP regulates and supervises 38 banks, 10 microfinance institutions and five development finance institutions.

About World Bank (WB)

The World Bank Group (WBG) is a US-based development bank that consists of five institutions, all of which are owned by its member countries. The Group’s mission is to improve living standards for people in the developing world. The World Bank Group encompasses the International Finance Corporation (IFC); the Multilateral Investment Guarantee Agency (MIGA); the International Centre for Settlement of Investment Disputes (ICSID) and the World Bank, which consists of the International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA). WBG has 120,000 employees and operations in approximately 120 countries as of July 2013 and an active grant and loan portfolio of USD 173 billion as of June 2012.

Sources and Additional Resources

[1] Samaa, “SBP, WB Join Hands For Financial Inclusion Strategy,” April 2014, http://www.samaa.tv/economy/04-Apr-2014/sbp-wb-join-hands-for-financial-inclusion-strategy

MicroCapital Story, January 13, 2014, “World Bank’s International Development Association Donating $50m to Support Microfinance Investment Support Facility for Afghanistan (MISFA), Afghanistan Credit Guarantee Facility,” https://www.microcapital.org/microcapital-brief-world-banks-international-development-association-donating-50m-to-support-microfinance-investment-support-facility-for-afghanistan-misfa-afghanistan-credit-guarantee-f/

MicroCapital Story, October 7, 2013, “State Bank of Pakistan Launches Financial Literacy and Awareness Program for Farmers,” https://www.microcapital.org/microcapital-brief-state-bank-of-pakistan-launches-financial-literacy-and-awareness-program-for-farmers/

MicroCapital Story, May 24, 2013, “State Bank of Pakistan’s Credit Guarantee Scheme for Small, Rural Businesses Extends Loan Repayment Term to 5 Years,” https://www.microcapital.org/microcapital-brief-state-bank-of-pakistans-credit-guarantee-scheme-for-small-rural-businesses-extends-loan-repayment-term-to-5-years/

MicroCapital Universe Profile: State Bank of Pakistan (SBP), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=State+Bank+of+Pakistan+%28SBP%29

MicroCapital Universe Profile, World Bank (WB), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=The+World+Bank+Grou

Do you know that MicroCapital publishes the MicroCapital Monitor newspaper each month? Find out more at https://www.microcapital.org/products-page/ 

Similar Posts: