KARACHI, Sept 17: The State Bank on Wednesday signed an MoU or memorandum of understanding with the Securities and Exchange Commission of Pakistan for a better coordination and efficient monitoring of the financial sector institutions.

SBP Governor Dr Ishrat Husain and SECP Chairman Dr Tariq Hasan signed the MoU on behalf of their respective organizations at the SBP head office here, says a press release.

“According to the MoU, which has come into force with immediate effect, the SBP and the SECP will share information and work towards the holistic development of the financial sector in supervision of banks/DFIs and NBFCs operating in Pakistan.”

The SBP release says both the SBP and the SECP have agreed to provide each other any information material necessary for consideration for the grant of authorization; assist each other by verifying or supplementing any information submitted by, or to any bank/DFI/NBFC and keep themselves informed from time to time about the nature of their regulatory system and the manner and extent to which they would like to conduct consolidated supervision over any group of banks/financial institutions having common management and ownership control.

“With a view to strengthening the supervisory and other skills, the SBP/SECP will provide, on request, necessary personnel, on secondment basis for a term not exceeding two years in each case and that such transfers shall be governed by the staff regulations and rules governing deputation of the lending party.”