PRs - Microfinance Banks PDF
PRs - Microfinance Banks PDF
PRs - Microfinance Banks PDF
Prudential Regulations
For Microfinance Banks
(Up-Dated as on 16th March, 2012)
These Prudential Regulations for Microfinance Banks provide minimum regulatory requirements that Microfinance banks should follow in their normal businesses.
CONTENTS
Regulation. 1 Regulation. 2 Regulation. 3 Regulation. 4 Regulation. 5 Regulation. 6 Regulation. 7 Regulation. 8 Regulation. 9 Regulation. 10 Regulation. 11 Regulation. 12 Regulation. 13 Regulation. 14 Regulation. 15 Regulation. 16 Regulation. 17 Regulation. 18 Regulation. 19 Regulation. 20 Regulation. 21 Regulation. 22 Regulation. 23 Regulation. 24 Regulation. 25 Regulation. 26 Title Scope Definitions Minimum Capital Requirements Exposure against Contingent Liabilities Maintenance of Cash Reserve & Liquidity Statutory Reserve Depositors Protection Fund Restriction on certain types of transactions Maximum Loan Size, and Disclosure of Basic Terms & Conditions of Maximum Exposure of a borrower from MFBs / MFIs / Other Financial Financial Products Institutions / NGOs. Classification of Assets and Provisioning Requirements Rescheduling / Restructuring of loans Writing-off Non-Performing Loans (NPLs) Pricing of MF Products and Services Investments of Funds Prevention of Criminal Use of MFB Channels for the Purposes of Money Laundering and other unlawful trade Removal of Records Management Places of Business Undertaking of cash payments outside the MFBs authorized place of business Reconciliation of inter-branch accounts and settlement of suspense account entries Audit and submission of Accounts Internal Audit Operational Policies Fit & Proper Criteria for Board Members and President / Chief Executive 4 4 4 5 5 6 6 6 7 7 8 8 9 9 10 10 10 11 11 11 11 11 12 12 12 12
Submission of Periodical Returns Credit Rating Penalties on violation of PRs Disclosure of Lending / Deposit Rates by MFBs Declaration of fidelity and secrecy Instructions on Calculation of Capital Adequacy Ratio (CAR) Fit & Proper Criteria for Members of Board of Directors and President / Chief Executive Officer of Micro Finance Banks (MFBs) Proforma (for submitting the information about the Board Members and/or President/Chief Executive Officer) Bi-Weekly Statement of Affairs CRR Statement SLR Statement Declaration of Fidelity and Secrecy Undertaking of various facilities already obtained from other MFBs / MFIs / Banks / other Financial Institutions.
13 13 13 13 14 16 19 22
24 26 27 28 29
PRUDNETIAL REGULATIONS
1. 2.
Title: These Regulations shall be called Prudential Regulations for Microfinance Banks (MFBs). Scope: These regulations shall be applicable to all Microfinance Banks licensed by the State Bank of
Pakistan.
3.
Definitions-----(1) For the purpose of these regulations, unless there is anything repugnant in the
subject or context: a) Documents include vouchers, bills, promissory notes, bills of exchange, securities for advances, claims by or against the MFB and other record supporting entries in the books of the MFB; b) Approved Securities shall mean registered Pakistan rupee obligation of Federal Government including but not restricted to Pakistan Investment Bonds (PIBs), and Market Treasury Bills (MTBs); c) Equity means and includes Paid-up Capital, Share Premium, General Reserves and unappropriated profits of the MFB; d) Exposure means Microfinance facilities provided by the MFB including both fund based and non-fund based; e) MFBs shall mean companies incorporated in Pakistan and licensed by the State Bank as Microfinance Banks to mobilize deposits from the public for the purpose of providing Microfinance services; f) Deposit means the deposit of money, repayable on demand or otherwise, accepted by an MFB from the public for the purpose of providing Microfinance services;
g) Poor person means person as defined in Prudential Regulation No. 10. h) Specified Area means the district, region (comprising up to five adjacent districts within the same Province or any other area where MFIs Ordinance 2001 is applicable), province or the whole country for which an MFB is licensed to operate; i) Contingent Liabilities means and includes inland letters of credit, letters of guarantee, bid bonds / performance bonds, and advance payment guarantees; Records includes ledgers, daybooks, cash books, supporting documents and all other manual or magnetic/electronic records used in the business of the MFB;
j)
k) State Bank means State Bank of Pakistan established under The State Bank of Pakistan Act, 1956.
STATE BANK OF PAKISTAN | Microfinance Department 4
l)
Microenterprises shall mean projects or businesses in trading /manufacturing /services /agriculture that lead to livelihood improvement and income generation. Moreover, these projects/businesses are undertaken by microentrepreneurs who are either self-employed or employ few individuals not exceeding 10 (excluding seasonal labor). In Pakistan, microenterprises operate in numerous forms including carpenters, electricians, food stalls, farmers, live-stocks, lathe machines, mechanics etc. and these have traditionally lacked access to formal financial services.
4.
iii.
The MFBs shall also maintain Capital Adequacy Ratio (CAR) equivalent to at least 15% of their risk weighted assets. Instructions on calculation of CAR based on risk weighted assets are provided in Annexure-A. For the purpose of maintaining minimum CAR, MFBs are also allowed to raise subordinate debt in local currency, subject to obtaining prior written approval from the SBP. The terms and conditions for raising sub-ordinate debt are provided in Annexure-A.
5.
6.
ii.
B. Statutory Liquidity Requirement: i. The MFB shall also maintain statutory liquidity reserve equivalent to at least 10% of its total demand liabilities and time liabilities with tenor of less than 1 year, in the form of liquid assets i.e. cash, gold and unencumbered approved securities. Time liabilities with tenor of 1 year and above, borrowings from SBP (if any), call Borrowings and other Inter-bank borrowings from Scheduled Banks (including Micro Finance Banks) will be exempted from maintenance of SLR. For SLR calculation, the approved securities mean Treasury Bills and Pakistan Investment Bonds.
ii.
iii.
MFBs shall report their CRR/SLR position as prescribed in PR. No. 27.
7.
Statutory Reserve
The MFB shall create a reserve fund to which shall be credited: i. An amount equal to at least 20% of its annual profits after taxes till such time the reserve fund equals the paid-up capital of the MFB. Thereafter a sum not less than 5% of its annual profit after taxes.
ii.
8.
9.
10.
1. Housing Loans: Maximum Loan size is up to Rs. 500,000/- to a single borrower with household annual income up to Rs. 600,000/-. However, at least 60% of housing loan portfolio of an MFB should be within the loan limit of Rs. 250,000/- or below. 2. General Loans (Other than housing loans): Maximum Loan size is up to Rs. 150,000/- to a single borrower with household annual income (net of business expenses) up to Rs. 300,000/-. 3. Loans to Microenterprises: Loans to microenterprises shall be up to a maximum of Rs. 500,000/-. The MFB shall extend the enterprise loans only in the name of microentrepreneur to ensure traceability and reduce the incidence of multiple borrowing. The aggregate exposure against the enterprise loans in excess to Rs. 150,000/- shall not exceed 40% of the MFBs gross loan portfolio. MFBs shall ensure to have in place appropriate mechanism for monitoring the aggregate exposure limits on enterprise lending. Only those MFBs that are fully compliant with minimum capital requirement (MCR) and capital adequacy ratio (CAR) shall be eligible to undertake microenterprise lending. The interested MFBs shall develop related institutional capacity (products, credit risk management and monitoring system, trainings etc.); and submit its detailed business plan of microenterprise lending to SBP for seeking necessary approval. The SBP shall evaluate the plan along with operational/financial performance, funding plan, supervisory assessment, and credit rating of the MFB, and accordingly grant permission for launching pilot program to the applicant MFB. The final approval for enterprise lending shall be granted subject to satisfactory evaluation of pilot program.
11.
Maximum Exposure of a borrower from MFBs / MFIs / Other Financial Institutions / NGOs.
The MFB shall develop an internal mechanism to monitor the overall exposure of its borrowers so as to manage credit risk and also minimize the borrowers over indebtedness risk. Firstly, at the time of granting facility, MFBs shall obtain a written declaration on the prescribed format attached as AnnexureF from the borrower divulging details of various facilities already obtained from other MFBs / MFIs / Banks / other Financial Institutions. The MFB shall ensure that total exposure of its clients does not exceed their total repayment capacity as determined under the criteria laidout in the MFBs credit policy. The maximum limits of the borrowers aggregate exposure shall not exceed Rs. 150,000/- for general loans, Rs. 500,000/- for housing loans, and Rs. 500,000/- for microenterprise loans. The aggregate exposure of the borrowers who are eligible to avail both general and microenterprise loan shall not exceed Rs. 500,000/-. Before allowing any credit facility, the MFBs shall obtain a credit report from the Credit Information Bureau of State Bank of Pakistan, or from any other appropriate Credit Information Bureau of which they are a member. However, if credit facility exceeds Rs. 30,000, it will be mandatory for MFBs to obtain credit report from Credit Information Bureau of State Bank of Pakistan. The credit reports should be given due weightage while making credit decision.
12.
MFBs shall maintain a Watch List of all accounts delinquent by 5 29 days. However, such accounts may not be treated as NPL for the purpose of Classification / Provisioning.
B. Provisioning Requirements i. General Provision: The MFB shall maintain a General Provision equivalent to 1.0% of the net outstanding advances (advances net of specific provisions). However, general provision shall not be required in cases wherein loans have been secured against gold or other cash collateral with appropriate margin. Specific Provisions: In addition to the general provision, the MFB shall make specific provisions against NPLs at the following rates:
ii.
a. OAEM: Nil b. Substandard: 25% of outstanding principal net of Cash collaterals and Gold (ornaments and bullion) realizable without recourse to a Court of Law c. Doubtful: 50% of outstanding principal net of Cash collaterals and Gold (ornaments and bullion) realizable without recourse to a Court of Law d. Loss: 100% of outstanding principal net of Cash collaterals and Gold (ornaments and bullion) realizable without recourse to a Court of Law. Note: MFB shall undertake Classification and Provisioning exercise at the end of every month. The MFB at their discretion may also apply more stringent classification and provisioning criteria for NPLs. C. Investments and Other Assets The MFB shall value its investments on mark-to-market basis. However, in case of investments & other assets where active market does not exist, the MFBs shall make subjective evaluation of such investments and other assets to determine their quality, category of classification and provisions required, keeping in view the risk involved and the requirements of international accounting standards.
13.
14.
15.
16.
Investments of Funds
MFB may invest their surplus funds in Government Securities, and A rated debt securities like TFCs and units of those Mutual Funds which maintain their investment portfolio in fixed income securities or money market instruments. In addition, MFB may also acquire or hold shares of any body corporate, the objective of which is to provide microfinance services, technical, vocational, educational, business development and allied services to the poor and micro enterprises. The maximum investment in such a company or security shall not exceed 15% of paid-up share capital of that company or 15% of MFBs own equity free of losses, whichever is less. For making investment in excess of the 15% limit, prior permission from SBP shall be obtained.
17.
Prevention of Criminal Use of MFB Channels for the Purposes of Money Laundering and other unlawful trade
While considering proposals for extending Microfinance facilities, the MFB shall make all reasonable efforts to determine the true identity of its clients and shall develop and implement effective procedures and methods for the purpose. It shall interalia obtain copies of National Identity Card or Passport or Driving license etc. of the client which shall be stamped as original seen by the MFB officer. In far-flung and remote areas where people, particularly women, do not have identity cards, the MFB may extend micro-credit by establishing identity through other appropriate means. Before extending deposit services to corporate clients, the MFB shall obtain by-laws, Memorandum & Articles of Association and Board Resolution etc. A. Record Retention The records of transactions and identification data should be maintained by MFBs in systematic manner with exactness of period of preservation. For the purpose, following minimum requirements shall apply; i). Identification Record: MFBs shall keep record on the identification data obtained through the Customer Due Diligence (CDD) process, account files and business correspondence for at least five years following the termination of the business relationship. Transactions Record: MFBs shall maintain all necessary records on transactions, both domestic and International, for at least five years following completion of the transaction. Such record must be sufficient for reconstruction of individual transactions so as to provide, if necessary, evidence for investigation or prosecution of criminal activity.
STATE BANK OF PAKISTAN | Microfinance Department 10
ii).
The examples of the necessary components of transaction record may include: customers name (beneficiarys name), address, nature and date of transaction, type and amount of transaction, currency involved, type and identification of any account involved in the transaction. The identification and transactions record should be made available to SBP as and when required. MFBs shall, however, retain records for longer period, if required by any other law or where transactions and / or relationship relate to any investigation, litigation or required by the Court of law or by any other competent authority.
18.
Removal of Records
The MFB shall not remove from specified area, to a place outside that specified area, any of its records and documents either physically or electronically relating to its business without the prior permission in writing of the State Bank of Pakistan.
19.
Management
No member of the Board of Directors of an MFB holding 5% or more of the paid-up capital of the MFB either individually or in concert with his/her family members or concerns / companies in which he / she has the controlling interest, shall be appointed in the MFB in any capacity save as the Chief Executive of the MFB and that no payment shall be made or perquisites provided to the non-executive directors other than traveling and daily allowances for attending meetings of the Board of Directors or its Committees. Provided further that not more than 25% of the total directors can be paid executives of the MFB.
20.
Places of business
The MFB shall not open new places of business without prior permission in writing of the State Bank. The approval / permission for opening of new branches / places of business shall be granted in accordance with the MFBs Branch Licensing Policy.
21.
22.
23.
24.
Internal Audit
The MFB shall have an Internal Audit Department manned preferably by professionals/persons having prior audit experience in banks/Financial Institutions. The Head of the Department shall report directly to the Board of Directors or to an Audit Committee of the Board.
25.
Operational Policies
The MFB shall formulate operational policies for all areas of operations including micro-credit, investments, internal audit, human resource and rescheduling/restructuring/write-off of loans/advances etc. and shall submit the policies, duly approved by its Board of Directors, to State Bank within 6 months of commencement of its operations.
26.
Fit & Proper Criteria for Board Members and President/Chief Executive
The Boards of Directors of Microfinance Bank define and set vision and mission and overall goals and objectives to be achieved by the bank, ensure development of policies and risk management systems for different areas of operations and oversees implementation of/compliance with the policies. The President/Chief Executive leads the executive management to implement the Boards plans. The Board Members and President/Chief Executive are also custodians of public savings deposited with the bank and as such should not only be persons of established integrity and track record, but should also have necessary capacity, qualification and experience to effectively undertake their respective responsibilities and functions in order to lead and steer the MFB as a socially conscious, pro poor and commercially viable financial institution. State Bank of Pakistan has therefore, formulated Fit & Proper Criteria for the Board M embers and President/Chief Executive of Microfinance banks, which prescribes the minimum qualifications, experience and integrity standards etc. for the MFBs Board Members and President/Chief Executive. The criteria is given at Annexure B, whereas the proforma for submitting the information about the Board Members and/or President/Chief Executive Officer to State Bank is given at annexure C.
12
27.
28.
Credit Rating:
The MFBs shall get themselves rated by any of the rating agencies on the panel of State Bank of Pakistan or any international microfinance rating agency with prior approval of SBP, within three years of grant of license by State Bank of Pakistan to operate as MFB or within one year of commencement of deposit mobilization services whichever is earlier. The rating shall be an ongoing process and updated on a continuous basis from year to year within four months of the close of financial year after the first rating as stated in the first paragraph. The rating report shall be submitted to State Bank of Pakistan within 7 days of notification of the latest rating. The rating shall also be disclosed to the public within 15 days of the notification of the latest rating by the rating agency.
29.
30.
13
31.
14
15
Annexure A
16
MICROFINANCE BANK
CAPITAL ADEQUACY RATIO AS ON XX.XX.XXXX Sr. No. 1 Core Capital 1.1 Fully Paid-up Capital 1.2 1.3 1.4 1.5 1.6 Less: 1.7 1.8 1.9 1.10 2 Intangible Assets Shortfall in Provision required against Classified Assets. Sub-Total (1.7 to 1.8) Eligible Core Capital (1.6-1.9) xxx xxx (xxxx) Balance in Share Premium Account Reserve for Bonus Shares General Reserves Un-appropriated Profit/(Loss) Sub-Total (1.1 to 1.5) ITEMS Table-A AMOUNT xxx xxx xxx xxx xxx xxxxxx
Supplementary Capital 2.1 Freely available General Provisions or reserves for loan losses up-to maximum of 1.25% of Risk Weighted Assets 2.2 Revaluation reserves eligible up-to 50% 2.3 2.4 Sub-ordinated debt (up-to 50% of core capital) Sub-Total (2.1 to 2.3)
3 4
Total Capital (1.10 + 2.4) Capital Adequacy Ratio 4.1 Risk Weighted Assets (as per Table B) 4.2 4.3 4.4 4.5 Minimum Capital Requirement (15% of Total Risk Weighted Assets as per item 4.1) Total Capital Held (As At Item 3 Above) Capital Surplus/(Shortfall) (4.3 - 4.2) CAPITAL ADEQUACY RATIO (4.3 / 4.1x 100) xxxx xxx xxx xxx xxx
17
Table-B
ADJUSTED VALUE
1 2
0%
0%
20%
Investments in: 4.1 Treasury Bills 4.2 Federal / Pakistan Investment Bonds 4.3 Other securities of Federal Government 4.4 Marketable Securities (TFCs / Mutual Funds) 4.5 Other Investments (TDRs of Banks/MFBs)
0% 0% 0% 100% 20%
Loans & Advances (Less Cash margin and Govt. Securities held) 5.1 Loans guaranteed by Federal Govt./ SBP 5.2 Microcredit 5.3 Loans fully secured by mortgage of residential or commercial property 5.4 Staff loans
6 7
Fixed Assets (net of accumulated depreciation) Assets deducted from capital: 7.1 Intangible assets 7.2 Unconsolidated investment in subsidiary companies engaged in Microfinancing activities
0% 0%
Other Assets 8.1 Advance tax 8.2 Deposits & prepayments 8.3 Accrued income on Advances 8.4 Accrued income on deposits accounts 8.5 Accrued income on investments - PIBs/T-Bills 8.6 Accrued income on investments - Others 8.7 Other receivable TOTAL 0% 100% 100% 100% 0% 100% 100%
18
Annexure- B
Fit & Proper Criteria for Members of Board of Directors and President / Chief Executive Officer of Micro Finance Banks (MFBs)
The competence of the Board Members and President/CEO is critically important for success of any corporate entity generally and financial institutions, being highly leveraged outfits, particularly. The Board Members and the President/CEO of banks and financial institutions are custodians of not only the shareholders money but also the public funds placed with them as deposits. The Microfinance Banks are formal financial institutions eligible to extend a variety of financial services to the poor including savings and deposits. The MFBs Board Members and the President/CEO should therefore, be persons of established integrity and track record and have the necessary capacity, experience and exposure to manage the bank and public funds. The following criteria has therefore, been developed for MFBs Board Members and the President/CEO to ensure that the skill mix of the Board is compatible with the mission, vision and objectives of the MFBs and that the President/CEO has requisite background/expertise and relevant experience to run and manage the MFBs:
iv)
v) vi) vii)
however are encouraged to engage persons having professional and advanced qualifications in banking, finance, economics, information technology etc.
g. Finance professional(s)/Business/Management Consultant(s) having at least 5 years post qualification experience with reputed audit/business consulting firms etc. The above list however, is not exhaustive and persons from other professions and fields, business and industrial concerns, academia etc. may also be on MFB Board provided the overall skill mix of the Board remains compatible with the objectives and functions of the MFB. The minimum qualification for Board Members shall preferably be graduation or equivalent. However, for persons having extensive and successful experience in micro finance, poverty alleviation, social mobilization and development, women development, micro entrepreneur, business and industrial concerns etc. the minimum qualification limit may be relaxed.
20
The MFBs, while deciding the composition of the Board of Directors, shall ensure that the skill mix of the Board is compatible with the objectives, plans and functions of the MFB and that the Board would be in a position to give direction to the executive management and steer the MFB in the desired direction. In case the shareholder directors have similar experience, qualification etc, non-shareholder/professional directors, which could add to the skill mix of the board, may be selected / nominated. Further the MFBs are encouraged to have adequate female representation on their Board of Directors.
4. Track Record
i) ii) The person selected must have an impeccable track record in the companies he/she has served either in the capacity of an employee or Director/chief executive or as chairman and Has not been terminated or dismissed in the capacity of employee or Director/Chairman of a company.
5. Conflict of Interest
i) ii) The Directors on the MFBs Board shall not be Director of any other Micro finance Bank. He/She shall also not act as consultant, adviser or an employee of any other MFB. He/She shall avoid conflict of interest in his/her activities with, and commitments to, other organizations.
6. Others:
No member/office bearer of any political party or member of Senate, National/Provincial assembly/assemblies shall be appointed / recommended for appointment as Member of Board of Director and/or President/Chief Executive Officer of MFBs.
7. Prior Clearance
The MFBs shall submit information about the Board Members and/or President/Chief Executive Officer to State Bank, as per the Performa enclosed as Annexure-C, for clearance before selection/appointment or reappointment/renewal of term of Directors and President/Chief Executive Officer.
**************
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Annexure-C
PROFORMA
1. Full Name ___________________________________________________________________ 2. If You Have Changed Your Name, State Previous Name and Reasons for Change __________ ______________________________________________________________________________ 3. Parents and Spouses Names Fathers Name: ___________________________________________________________ Mothers Name: _____________________________________________________ _____ Spouses Name: __________________________________________________________ 4. Date & Place of Birth __________________________________________________________ 5. Religion _________________________: 6. N.I.C. Number: Old ______________________ New ______________________ 7. N.T.N. ____________________ 8. Education ________________________________ 9. Relationship with other Sponsor Directors __________________________________________ 10. Status of Directorship (shareholder or nominee) __________________________ 11. Subscribed Amount _____________________________ 12. Personal Net Worth (Certified copy of Wealth Statement may be enclosed) _______________ 13. Occupation / Profession / Trade _________________________________________________ 14. Present Designation, Department and official Address _____________________________________________________________________ 15. Telephone Numbers: Res.________________ Off: _____________ Mobile: ____________
22
Prudential Regulations for Microfinance Banks 16. Appointments Held During the Last Five Years (With Dates):
17. List of Companies / firms and their bankers in which sponsor directors and their family members viz. spouses, children an parents serve (d) as directors, chief executive, partner, proprietor or major shareholders holding 5% or more shares as per following format: Name of the Sponsors Director an his / her family Members Occupation/ Profession/ Trade National Tax No. NIC & Passport No. Name of Associated Company / Firm position held & % of Shareholding Name of the Financial Institution along with the name of the branch (account number) with which firms / companies (as per column 5) have dealings with: 6
2 Nature of Business
3 Asset Base as reflected in the latest Audited Accounts of the Corporate Bodies 9
10
18. Declaration certificate pronouncing integrity, honesty, reputation and track record of the director as per guidelines given in Annexure B 19. Present Residential Address: __________________________________________________ __________________________________________________________________________________________________ ______ 20. Permanent Residential Address: _______________________________________________ ____________________________________________________________________________ 21. Names & Addresses of Three Respectable Persons (Not Relatives) Who Have Been Closely Acquainted with You during last five years __________________________________________ __________________________________________________________________________________________________ ________
Signature
*************
STATE BANK OF PAKISTAN | Microfinance Department 23
Annexure D
MICROFINANCE BANK
*Bi-Weekly Statement of Affairs as at Close of Business on ----Rupees in 000 AMOUNT
LIABILITIES: 1) Demand Liabilities a) Deposits (General) b) Deposits From Banks & Financial Institutions c) Borrowings From Banks And Financial Institutions (Other Than Call Money) d) Other Demand Liabilities 2) Time Liabilities a) Deposits (General) b) Deposits From Banks And Financial Institutions c) Borrowings From Banks And Financial Institutions d) Other Time Liabilities 3) Borrowings From The State Bank Of Pakistan a) Against Promissory Notes b) Against Approved Securities c) Other Borrowings 4) 5) 6) 7) 8) 9) Money At Call And Short Notice Borrowing from Banks Abroad Borrowings From Government of Pakistan Capital (Paid Up)/Capital Fund And Reserves Other Liabilities (Excluding Contra Items) Total Liabilities
xxxx
xxxx
xxxx xxxx
Assets: 1) Cash 2) Balance With a) State Bank of Pakistan b) National Bank Of Pakistan c) Other Financial Institutions 3) Money At Call And Short Notice 4) Advances 5) Bills Purchased And Discounted xxxx xxxx xxxx xxxx
24
6) Investment In Securities And Shares a. PIBs b. T-Bills Other Approved Securities d. Shares e. Others (Specify) 7) Other Assets (Excluding Contra Items)
8) Total Assets Note: The Unencumbered approved securities held for liquidity purposes were: a. b. c. d. PIBs TBs Others (specify) Total xxxx xxxx xxxx xxxx
xxxx
25
Annexure D1
2. Total Deposits (1.1 to 1.7) 3. Required CRR (5% of Total Deposits as per item # 2) 4. Actual Cash Reserve as of ----5. Surplus / (Deficit)
26
Annexure D2
1.9 1.10'
xxx
27
Annexure E
I, (insert name) on becoming [President/ Chairman of the Board/ Director on the Board/auditor/staff] of the (insert name of Microfinance Bank) in terms of Section 26-A of the Microfinance Ordinance, 2001 do hereby solemnly & sincerely confirm/declare that I shall observe strict fidelity, secrecy and usage customary among bankers and all matters relating thereto and in particular shall not divulge or communicate any information relating to the affairs of its customers, which may come to my knowledge in discharging my duties directly or indirectly, except in circumstances in which it is in accordance with law, practice and usage customary among bankers.
28
Annexure F
UNDERTAKING
I ----------------------------- S/O, D/O, W/O ------------------------------- holder of CNIC -----------------------, undertake that the detail of my existing exposure from the Entire Banking & Microfinance Sector as on-------------- is as under:
Details of Loans: Sr. # Name of the MFB/MFI/Bank /other financial Institutions Type of Loan Outstanding Amount
Total Exposure
Signature:____________________________
CNIC # _____________________________
Date: _______________________________
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