SBP imposes fines on four banks for rule violations
Enforcement actions in the July-September quarter against four banks by the State Bank of Pakistan (SBP) resulted in penalties worth Rs83 million, down 76.3 per cent from the fines of Rs350.8m imposed in the preceding three-month period. The central bank takes “supervisory enforcement actions” when banking entities become non-compliant with regulations. It usually imposes penalties but may also resort to “administrative and financial sanctions” in addition to seeking help from law enforcement and prosecution bodies. Data released by the SBP on Wednesday showed the number of erring banks decreased from six in the April-June quarter to four in the latest three-month period. The biggest penalty was imposed on United Bank Ltd (UBL), which was in violation of regulatory instructions pertaining to foreign exchange and general banking. The amount of penalty on UBL was Rs26.5m. In addition to the penalty, the SBP asked the commercial lender to strengthen its controls and ensure meticulous compliance.