The Securities and Exchange Commission of Pakistan (SECP) has proposed amendments to the Non-Banking Finance Companies and Notified Entities Regulations, 2008 to improve governance and risk management of Non-Banking Microfinance Companies (NBMFCs).
According to a statement issued on Friday, the amendments, intended to inculcate self-discipline amongst market players and enhance consumer protection, have been placed on SECP’s website to solicit public comments.
Alongside microfinance banks, the NBMFCs play a crucial role in achieving inclusive economic growth with their small-ticket loans and thus an important tool to reduce poverty.
The sector has 26 operating NBMFCs with over three million active borrowers and a gross loan portfolio of Rs72 billion.
During the Covid-19 pandemic, the NBMFCs have faced serious sustainability challenges. However, SECP took timely decisions to enable NBMFCs to operate smoothly and provide relief to their respective microfinance clients, said the statement.—TLTP