Development of an inclusive financial system in the country that could ensure access to financial services to all segments/sectors of the economy is an important strategic objective of SBP. The establishment of Development Finance Group (DFG) in SBP in the recent past is aimed at creating the necessary institutional capacity in SBP to achieve this strategic objective. While the
DFG is engaged in enhancing its capacity to catalyze and facilitate expansion of financial services in un-banked/under-banked areas/sectors, the group based in Karachi, has no presence in the field to continuously interact with grassroots level stakeholders and monitor banks’ progress (at regional/district level) to develop and expand their development finance capacity. The SBP-BSC however has presence in 16 key areas/regions across the country with immense potential for growth of development finance.
The Development Finance Support Department (DFSD) in the BSC is aimed at using the BSC field offices across the country to augment the DFG capacity and its role for connecting the un-banked/under-banked areas/sectors with the country’s financial markets. The DFSD though based in BSC Head Office Karachi (HOK), it has gradually established Units in 13 field offices. The Divisions/Units in the field offices are the local contact points for continuous interaction with stakeholders.
I. To coordinate and interact with DFG and banks to have region-wise and branch wise plans/targets for financing to SMEs, Micro Enterprises (MEs) , low cost housing and to farming/rural communities;
II. To monitor banks’ performance towards achievement of their regional and branch-wise targets of development finance using the BSC field offices;
III. To collect regional and/or branch-wise data from Data Warehouse or DFG Departments for assessing banks’ performance as well as to study regional trends in growth and development of SMEs, Micro and Rural Finance;
IV. To develop and maintain province-, region- and district-wise development finance database; this will help us optimally target our resources to increase outreach of financial services in un-banked/under-banked areas/sectors;
V. To monitor banks’ progress towards building and enhancing their retail capacity (in terms of branch network, IT systems, human resources) to expand their development finance outreach in different regions of the country;
Awareness and Information Dissemination
VI. To organize programs/field visits/workshops/seminars in consultation with DFG to create awareness amongst the target population viz. the SMEs, MEs and farming community about financial services being offered by banks and financial institutions; (the training and field visits programs undertaken by ACD, being the field activity, could be transferred to the department; the capacity at field offices would be built gradually to undertake such programs on more frequent basis);
VII. To develop linkages with SMEDA, representatives/associations of SMEs and MEs, farming community, chambers of commerce and agriculture, trade bodies for better and wider dissemination of SBP Development Finance policies and approach;
VIII. To facilitate the DFSUs in conducting the meetings of Regional Focus Groups for Agriculture, SME and Micro-finance. The Groups have been constituted in all BSC offices to exclusively review the trends in each of these sectors and evolve operational strategies to increase outreach of Agriculture, SME and Micro-finance in their respective regions;
IX. To develop linkages with provincial and District governments, agricultural research and extension departments to explore synergies between their poverty alleviation and information dissemination programs and the department’s goal for increasing outreach of financial services in un-banked/under-banked areas/sectors;
X. To facilitate linkages/partnerships between technical and vocational institutes and banks/MFBs for imparting technical/vocational training to the prospective clients of banks/MFBs on cost sharing basis;
XI. To develop linkages with universities and colleges in the region to initiate development finance courses/specializations/majors to cater to the growing demand for development finance.
