The State Bank of Pakistan (SBP) has decided to disclose significant enforcement actions against the financial institutions for further improving the transparency and discipline. According to a circular issued Tuesday, enforcement actions are an integral part of the regulatory regime which involves imposition of monetary penalties and other actions against institutions and individuals for violations of laws, rules, regulations, guidelines or directives issued by the SBP from time to time.
Therefore, in order to bring more transparency and strengthen market discipline, the SBP has decided to disclose significant enforcement actions against all banks, DFIs, Micro Finance Banks (MFBs) and Exchange Companies (ECs) through the SBP website.
Sources said that the decision has been taken following the advice of Financial Action Task Force (FATF) that asked for disclosure of enforcement actions by the SBP. In addition, this will help boost the customer confidence and force banks to perform better.
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