‘Banks to ensure responsible conduct’

KARACHI: The State Bank of Pakistan (SBP) on Tuesday asked the banks to ensure responsible banking conduct, which is a prerequisite for a persistent inclusive growth.  

“The foundation of financial consumer protection must ideally rest on self regulation… banks have in their conscience a clear concern in nurturing well-informed consumers capable of making right and sustainable choices,” a statement quoted SBP Deputy Governor Saeed Ahmed as saying.

He was addressing a seminar titled, “Responsible Banking Conduct” at the National Institute of Banking and Finance in Islamabad. 

“Responsible banking conduct cannot be achieved merely by ring-fencing consumer protection within the compliance function. Instead, the entire bank – right from the board to the frontline managers – has to be responsive to this objective,” Ahmed said. 

The deputy governor further said consumers must not only be treated fairly but be seen to be treated fairly in order to win the trust of stakeholders.

“Customer empowerment is part of SBP financial inclusion strategy and it will devote adequate resources to implement the strategy; however banks also need to join us and augment our efforts to promote financial literacy and consumer awareness,” he said.