Call for public consultation on draft prudential regulations for SME financing

KARACHI: The State Bank of Pakistan (SBP) has made a comprehensive review of the prudential regulations (PRs) for SME financing to promote sustainable, responsible and inclusive SME finance, a statement said on Thursday.

In addition to the introduction of some new regulations, several existing PRs have also been revised to make the PRs principles based, remove structural barriers in SME finance, encourage banks to leverage technology, and foster partnerships with fintech companies and other non-financial service providers to better serve the financing needs of the SMEs.

The consultation period will be open for two weeks from June 5-20. “The feedback so received will help us to further align the prudential regulations for SME finance with the SMEs’ market dynamics,” the SBP said. “The SBP encourages all the stakeholders including the banks, business analysts, trade bodies and public at large to share their valuable feedback on the draft PRs,” it added.