The State Bank of Pakistan (SBP) has imposed a monetary penalty of Rs14.61 million on the National Bank of Pakistan (NBP) for violating various regulatory provisions during the first quarter of the calendar year 2023.
This penalty is a part of the enforcement actions taken by SBP against institutions and individuals for violating laws, rules, regulations, guidelines, or directives issued by the central bank. The NBP had paid Rs21.68 million in the previous year for non-compliance with SBP regulations.
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The central bank started publicly disclosing penal action against banks from July 2019. The documents revealed that the National Bank has also paid an amount of Rs1.1 million to other regulatory bodies, including the central bank of international branches. In total, the NBP paid Rs15.70 million as monetary penalty during the first quarter of 2023 as compared to Rs21.68 million paid in the same quarter of the last year.
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The SBP has been taking measures to ensure that banks comply with regulatory provisions to maintain stability and transparency in the banking sector. Non-compliance by banks can lead to monetary penalties and other actions that can affect their reputation and financial stability. The public disclosure of penal action against banks is an effort to create awareness among financial institutions to comply with SBP regulations to avoid penalties and maintain public trust.
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In conclusion, the monetary penalty imposed on the National Bank of Pakistan by the State Bank of Pakistan serves as a reminder to financial institutions to comply with regulatory provisions. The SBP’s efforts to maintain transparency and stability in the banking sector are crucial for the economic development of the country. It is important for banks to maintain public trust and ensure compliance with regulatory provisions to avoid monetary penalties and other actions by the central bank.
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