SBP has directed the banks/development finance institutions (DFI) to avoid refusal of loans to individuals or companies based on their trade, region, gender, ethnicity, specific profession, class. The Central Bank issued that it had received many complaints from Politically Exposed Personnel (PEPs) regarding banks’ discriminatory policies while considering their loan requests.
The press release informed that, banks should not reject loans to individuals due to their class. It said that a certain group of citizens e.g. journalists, lawyers, politicians, security officials and law enforcement agencies etc have been rejected loans by banks without giving out any proper reason.
SBP in its communiqué directed the banks to develop a separate filing system for loan requests from PEP’s and it must hold a due record of the basis of refusal to any of the loan requests made by these PEPs.
The bank also warned Banks/DFIs that any violation of the above mentioned directives will result in punitive actions against them under the provisions of Banking Companies Ordinance, 1962.