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PRUDENTIAL REGULATIONS FOR CONSUMER FINANCING (Updated on August 03, 2016) BANKING POLICY & REGULATIONS DEPARTMENT STATE BANK OF PAKISTAN Disclaimer: State Bank of Pakistan compiles a booklet.

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For example, Prudential Regulations require banks/DFIs to obtain copy of accounts from customers only in cases where the exposure exceeds Rs. 10 million. However, if a bank/DFI considers necessary, it may require its customer to provide copy of accounts even in cases of lower exposure than Rs. 10 million.

But what does “prudential regulation” mean? Put simply, prudential regulation is a legal framework focused on the financial safety and stability of institutions and the broader financial system.

The SBP Act mandates the Bank to regulate the monetary and credit system of Pakistan and to foster its growth in the best national interest with a view to securing monetary stability and fuller utilization of the country's productive resources.

The objective of prudential regulation is to protect the stability of the financial system and protect deposits so its main focus is on the safety and soundness of the banking system and on non bank financial institutions (NBFIs) that take deposits.

The main components of these prudential policies are deposit insurance, solvency regulations, and emergency liquidity assistance by the central bank, acting as a lender of last resort.

Prudential regulations include minimum capital requirements, liquidity or loan portfolio diversification standards, limitations on a bank's investment portfolio or lines of business, and other restrictions intended to limit the type of risks which a banking firm may undertake.

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© Copyright 1997-2025
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Form Packages
Adoption
Bankruptcy
Contractors
Divorce
Home Sales
Employment
Identity Theft
Incorporation
Landlord Tenant
Living Trust
Name Change
Personal Planning
Small Business
Wills & Estates
Packages A-Z
Form Categories
Affidavits
Bankruptcy
Bill of Sale
Corporate - LLC
Divorce
Employment
Identity Theft
Internet Technology
Landlord Tenant
Living Wills
Name Change
Power of Attorney
Real Estate
Small Estates
Wills
All Forms
Forms A-Z
Form Library
Customer Service
Terms of Service
DMCA Policy
About Us
Blog
Affiliates
Contact Us
Privacy Notice
Delete My Account
Site Map
All Forms
Search all Forms
Industries
Forms in Spanish
Localized Forms
Legal Guides
Real Estate Handbook
All Guides
Prepared for You
Notarize
Incorporation services
Our Customers
For Consumers
For Small Business
For Attorneys
Our Sites
US Legal Forms
USLegal
FormsPass
pdfFiller
signNow
airSlate workflows
DocHub
Instapage
Social Media
Call us now toll free:
1-877-389-0141
As seen in:
  • USA Today logo picture
  • CBC News logo picture
  • LA Times logo picture
  • The Washington Post logo picture
  • AP logo picture
  • Forbes logo picture
© Copyright 1997-2025
airSlate Legal Forms, Inc.
3720 Flowood Dr, Flowood, Mississippi 39232