Page 47 - NIBAF-Training Matters July - December 2022

Common Techniques, Regulatory Banks/DFIs/MFBs each schedule, schedules for
Compliance and Reporting issues Statistics visible receipts and payments,
with the help of case studies. schedules for invisible receipts and
payments, Foreign Exchange
Overview of Financial Major changes in the financial Returns - Code Guide, Data
Institutions (Recovery of reporting standards together with Checks, Verification & Validation,
the evolving in the nature of
Reconciliation of opening and
Finances Ordinance), 2001 banking transactions has led to closing of AD balances with
enhanced data requirements for treasury position of banks and also
Recovery Laws and their efficient policy formulation, implementation conducted practice exercises. The
implementation are crucial for an and evaluation. In order to fulfill this session was conducted online on
efficient performance of the enhanced regulatory requirement, Nov 25, 2022 and attended by
banking sector. This session was Core Statistics Department-SBP almost 50 participants from
conducted to discuss the the latest has revamped half-yearly returns of banks/MFBs and SBP officers.
legislative developments in the field statistics while also increasing the
and discuss recovery procedures frequency of these returns. In order Risk-based Internal Audit
given under the Financial to apprise Reporting Institutions
Institutions (Recovery of Finances (RIs) on these developments, an Risk-based internal audits (RBIA)
Ordinance), 2001. Mr. Rizwan online orientation session was have gained popularity in recent
Naqshbandi, Divisional Head-Law, conducted to discuss key changes years as the financial institutions
BPRD discussed Recovery laws in in the reporting formats, addition of continue to adopt the Enterprise
Pakistan-History and Evolution, various new variables, Risk Management (ERM) approach
Background, rationale and scope enhancement of reporting code to assess their organization
of Financial Institutions (Recovery lists, reporting of branch wise Profit holistically. Under this ERM
of Finances) Ordinance, 2001, and Loss Accounts and other approach, auditors are expected to
historical development of Judicial guidelines for quarterly returns play an enhanced role in the bank’s
Test and Non-Judicial Foreclosure were provided to participants to risk reduction program. In order to
laws in Pakistan, Definition and help them submit timely and error familiarize the audit and finance
Historical development of willful free data to SBP. Team from Core professionals of financial
default, default of borrowers and Statistics Department including Mr. institutions of the tools/techniques
role of banks and Courts prior to Mian Muhammad Irfan, SJD and and processes involved in Risk-
2016 , Willful Default under NAB Ms. Sidra Jabeen, AD conducted based audits and to enable them to
Ordinance 2001 Vs the Ordinance, an interactive session clarifying examine the inherent risks in their
FIRO Amendments 2016, participant’s queries related to data organizations and reframe controls
Significance of Section 15 of the reconciliation and variables. The in view of the risk appetite an online
Ordinance, procedures for sale of session was conducted online from session on the topic was
participants to identify capacity building
mortgaged property and key Non 23-25, 2022 and attended by conducted by NIBAF-Quetta on
needs and identify future training
provisions of the Overview of FIRO 28 participants from banks, DFIs, Dec 21, 2022. Mr. Wasimullah,
interventions for remote areas.
Rules 2018. Syed Nasiruddin Shah, MFBs and SBP officers. Wing Head, Internal Audit, NBP
Judge, Accountability Court who shared his expertise spanning over
has also served as Judge-Banking Foreign Exchange almost 30 years of commercial and
Court discussed power and Reporting in ITRS central banking experience with the
procedure of the Banking Court, participants. He stressed the
Recovery Laws and implication and Several enhancements have been importance of a strong risk
challenges of recovery suits for made in the ITRs returns with the management program before
written off case and Recovery suits introduction new variables engaging in the risk-based audit
and summary procedure. The including the Roshan Digital exercise, synchronization with the
session was conducted online from Account, Non-Resident Value institution’s risk and compliance
Nov 16-17, 2022 and attended by Account etc. Hence a program for an impactful role in risk
Legal/Litigation teams and Credit omprehensive session was reduction program , role of
officers from banks, DFIs and SBP conducted on Foreign Exchange management and Board Audit
officers. Participants appreciated Reporting was conducted by Mr. Committee in specifying respective
conduct of a training on the topic Ghazanfar Aatzaz Amjad, Deputy institution’s risk universe and in
and expressed the need to develop Director, Core Statistics every step of the planning and
more courses for bank’s legal Department, SBP. Mr. Ghazanfar implementation process, and the
teams. discussed DAP-ITRS User significance of maintaining and
Interface, major reporting heads, improving risk management efforts
Quarterly Reporting of Summary Statements (S1, S4 and and controls over time through
Scheduled S-6), Reporting Schedules (as per consistent commitment to the RBIA
approach.
Security
Analysts,
BPM6), ITRS data entries against