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Banks and DFIs told to sign fidelity declarations

KARACHI (January 30 2004): State Bank has observed that most of the banks and development financial institutions were not following the requirement of making declaration of fidelity and secrecy under the Banking Companies Ordinance 1962.

“It has been decided that, from now onwards, president and chairman & members of the board of all banks/DFIs will sign a declaration as per the format before assuming their office,” said a circular issued by the SBP on Thursday.

The Section 33-A of the Banking Companies Ordinance, 1962, requires that every president, chairman & members of the board of the banks/DFIs make a declaration of fidelity and secrecy.

However, it has been observed that only few banks and DFIs are complying with the requirements laid down in Section 33-A of BCO, 1962. Even those complying with the requirements vary in contents of the declaration, the circular added.

In case of foreign banks, which are represented in Pakistan by their branch offices only, the country managers will sign the format. “The declaration may please be kept in safe custody with the banks/DFIs.”

The declaration as per the format for the existing president, country managers (in case of foreign banks' branches), chairman and members of the board may be obtained immediately and placed on record.

“Confirmation of compliance of the instruction is required within 90 days from the date of issue of this circular,” said the State Bank.

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