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050321
STATE BANK OF PAKISTAN - BANKING POLICY DEPARTMENT
BPD Circular Letter No. 11 of 2005
March 21, 2005
The Presidents/ CEOs,
All Banks (Incorporated in Pakistan).
Dear Sirs/ Madam,
OPENING OF PAKISTANI BANKS’ BRANCHES ABROAD
Please refer to the Branch Licensing Policy (BLP) issued vide BPD Circular No.
19 dated June 16, 2004, laying down, interalia, procedure, criteria and
parameters for evaluation of applications for opening of domestic branches.
Recently, a number of Pakistani banks have started looking for expanding their
business beyond the national boundaries and have been approaching State Bank of
Pakistan on case to case basis. In order to streamline the procedure for opening
of branch(es) /office(s) abroad by locally incorporated banks, the requirements
given below may be followed while forwarding application for SBP’s permission
under section 28 of Banking Companies Ordinance, 1962:
a. Application on a prescribed format under Section 28 of BCO, 1962 along with
brief business plan.
b. Approval of the Board of Directors.
c. Approval/NOC from the host country Central Bank.
d. Latest Audited Annual accounts (if not submitted earlier with any application
for opening of branch).
e. Bank/Branch Opening Policy/regulations of the host country Central Bank.
f. Supervisory practices in the host country.
g. Operating results of existing branch operations, in case branch (es) of bank
already exists in the host country.
In addition to above requirements, parameters as defined in Para -4 of the
Branch Licencing Policy will be used for evaluating the application for opening
of branch(es)/office(s) in the foreign country. Banks are advised to submit
their application to SBP along with above information/documents for obtaining
permission to open a branch(es)/office(s) outside Pakistan under section 28 of
BCO, 1962.
It may be noted that as soon as a bank’s Board of Directors or management
decides to enter a certain foreign market for opening of branch(es)/office(s)
they should inform such development to State Bank of Pakistan for information
purpose.
Please acknowledge receipt.
Yours faithfully,
Sd/-
(MUHAMMAD KAMRAN SHEHZAD)
Director
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