KARACHI, July 21: The State Bank has set up a new department for the promotion of development finance and growth of Small & Medium Enterprises or SMEs sector. The new department will be fully responsible for devising policies and strategies and all other regulatory and supervisory matters relating to SMEs, SBP announced here through a press release. The new department will have four divisions: SMEs division; Export Re-finance division; microfinance division; and housing finance & infrastructure development division.

The SBP has asked all banks and development finance institutions or DFIs through a circular that submit in future all their returns relating to development finance to the SME Department instead of the Banking Policy & Banking Supervision Departments of the central bank.

All banks/DFIs and House Building Finance Corporation have also been asked to submit the references, correspondence and returns relating to SME Department to the director of this department.

The SBP circular says that all banks will now send to SMED the returns relating to disbursement of credit to public sector enterprises or PSEs. All banks and DFIs will also send returns on credit offered under Textile Vision 2005 and monthly statements of BMR to the new department.