Page 22 - NIBAF-Training Matters April - June 2022

NIBAF Lahore

NIBAF-Lahore offered a mix of F2F
and virtual trainings over the
quarter. Several new training
programs, identified and
developed in coordination with L&D
heads of financial institutions and
market experts were launched with
highly encouraging participation. A
brief overview of training activities
over the quarter is as below:

Shipping Guarantee

International trade brings a wide Shipping Guarantee, why to by the banks. In order to build
array of risks for both the traders choose and when to use it, necessary capacity of banks and
and the financial institutions difference between Bank ensure implementation of
involved. Indemnification and Guarantee and Shipping instructions in letter and spirit, an
proper documentation are Guarantee, handling Shipping online session on the subject was
paramount to avert losses arising Guarantee business and its conducted by Ms. Sundus Saleem,
out of delays in shipment or potential risks, operational flows Joint Director, Banking Conduct
shipping documents. Traders and and advantages for banks. and Consumer Protection
banks are frequently faced with a Participants from various functions Department on April 20, 2022. In
situation where the imported goods of banks including compliance, addition to detailed briefing on
reach the destination much before Internal Audit and trade attended latest instructions in the subject
the shipping documents. the session. area, the trainer also covered
Significance of indemnities in such previous instructions,
situation cannot be stressed objectives/rationale for revision of
enough. Traders frequently use Revised SBP Instructions instructions, findings in banking
Shipping Guarantees to avoid high practices and gaps, revised
demurrage charges or price on Sale of Third Party regulatory instructions and way
fluctuations in such situations. In Products forward. The program was
order to apprise bankers on the attended by sales and operations
concept and modalities of Shipping The regulatory concerns regarding staff of banks.
Guarantees, newly developed banks venturing into the
program was conducted on the distributorship of third party
subject by Mr. Aamer Nadeem on products led to SBP issuing Corporate Governance
April 15, 2022. Mr. Nadeem has detailed instructions on the Sale of
more than three decades of Third Party Products. These Framework
experience in banking operations instructions aim to minimize the Effective Corporate Governance is
and specializes in foreign trade. He regulatory concerns related to mis- critical to the proper functioning of
shared a brief overview of a selling, conflict of interest and
grievance handling of customers the banking sector and this aspect
is unique in banks as compared to
other corporates, owing to the
nature of the banking business.
Complexity of banking operations,
its unique role in the economy, the
uniqueness of balance sheets,
concerns for protection of public
money and financial stability risks,
all warrant for a robust corporate
governance system for banks. In
view of this significance, SBP has
recently revised Corporate
Governance Framework and
issued them as separate set of