KARACHI, Feb 26: State Bank on Saturday issued guidelines to facilitate Non Government Organizations (NGOs)/ Rural Support Development Programs (RSPs), Cooperatives etc., interested in transformation into formal Microfinance Banks.

The guidelines define and discuss various aspects of transformation and prescribe minimum requirements to be completed by NGOs, etc., for purpose of transformation.

The guidelines are aimed at facilitating NGOs in their transition from informal, non-profit and unregulated institutions to formal, for-profit and regulated financial institutions for poor.

For last 4-5 years, SBP has been actively engaged in promotion and development of sound and stable microfinance sector in the country. It has taken a number of initiatives to help develop the sector including establishment of a separate division to focus on all Microfinance Institutions' (MFIs) issues & development of separate regulatory framework for MFIs.

The initiatives have started yielding positive results in form of substantially improved activity in this sector and raising confidence of private sector to venture into microfinance sector.-PPI