Outsourcing: SBP issues new guidelines for banks

KARACHI: The State Bank of Pakistan (SBP) has decided that any investment portfolio up to 15 per cent of the equity of a bank, development finance institution (DFI) and microfinance bank (MFB) will not be considered as core activity for the purpose of outsourcing arrangements under its guidelines.

According to an SBP circular issued on Friday, the guidelines on outsourcing arrangements prohibit banks, DFIs and MFBs from outsourcing certain core activities, functions and processes that require effective involvement of the board of directors and senior management on a continuous basis.

Published in The Express Tribune, May 14^th, 2011.