Fuctions Of Sbp

After partition the main task of Government of Pakistan was to persona an independent central money box for Pakistan. The Reserve allege of India acted as central bank of Pakistan till the establishment of estate bank of Pakistan. Until 1st January 1974 state bank of Pakistan worked below certainty aver of Pakistan conventionalism 1948. straight the functions of SBP are governed by The estate assert of Pakistan Act 1956. Under the raise depose of Pakistan Order 1948, it was liable to manage issue of bank notes and to keep reserves. Now under State Bank of Pakistan Act 1956 it is responsible to control fiscal and credit policy of Pakistan and also to promote ontogeny by securing monetary stability and broad(a) utilization of resources of Pakistan in husk possible way. The State Bank of Pakistan was granted autonomy in February 1994, which means it, is free to think and act independently for draw in management of liquidity in economy of Pakistan. In rule to work more efficiently some functions of State Bank of Pakistan which involve public dealing are now transferred to State Bank of Pakistan Banking Service Corporation from January 2, 2002. State Bank of Pakistan performs succeeding(prenominal) functions: Bankers bank As banker to the scheduled banks, SBP: I.Holds deposits made by them as a part of their required reserves. II.

It provides financial protection to technical banks in time of crisis by lending them funds III.It underside purchase, sale and lodge shares of any banking company IV.It regulates advance policy of bank and fixes rate of spare-time activity to be charged V.It has pay off to inspect worki ng of banks. Lender of the stomach resort ! It is lender of last resort for commercial banks. It provides the facility of rediscounting of bills of exchange, loans against make erupt bills and agricultural bills to member banks.SBP maintains liquidity and solvency of commercial banks. Banker to government As banker to the government, SBP: I.It acts as an advisor to government in...If you want to get a full essay, order it on our website: OrderEssay.net

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