The Presidents/Chief Executives
All Banks/DFIs

Dear Sirs/Madams, 

Questionnaires for Self-Assessment-IRAF

Please refer to the Governor’s communication dated January 10th 2004 notifying the introduction of the concept of Institutional Risk Assessment Framework (IRAF) for ensuring proactive monitoring of the risks the banks/DFIs are exposed to and to further strengthen the existing supervisory mechanism of the State Bank of Pakistan. The new framework envisages a collaborative and seamless supervisory focus amongst the various supervisory departments within the SBP.

The review of banks/DFIs under IRAF shall be based on inputs relating to four areas. These include compliance with standards, codes & guidelines; supervisory & regulatory information; financial performance & condition and market information & intelligence. In this regard, SBP has prepared the attached Questionnaires for Self-Assessment of banks/DFIs. These questionnaires have been prepared in light of prudential regulations & guidelines issued from time to time for compliance by the banks/DFIs.

It would be the responsibility of the Board of Directors to fill out these questionnaires and submit them to Banking Inspection Department on half yearly basis, within forty-five days of the cut-off date, which would be June 30th and December 31st. In case of banks incorporated outside Pakistan, with branches operating in Pakistan, the country manager would be authorized to fill out the forms and submit the same. The first duly filled in questionnaire as of 30th June 2004 should be submitted by 31st August.

Please acknowledge receipt.

Encl: Annexure-I, Annexure-II, Annexure-III, Annexure-IV, Annexure-V, Annexure-VI, Annexure-VII