The State Bank of Pakistan (SBP) Tuesday issued a ‘Code of Conduct’ to regulate the treasuries of banks, development finance institutions (DFIs) and primary dealers (PDs) given the expanded size of the latter.
The size of the country’s interbank market, its diversity and complexity have grown over the years, said the central bank.
Therefore, the bank said, the need of adopting highest ethical conduct and uniform practices has become essential for smooth functioning of the market.
This ‘Code of Conduct’ has an important role to play in promoting ethical behavior and standards of conduct; affirming the use of sound dealing practices and procedures; supporting robust and efficient front and back office operations; and mitigating risks from the point of execution to settlement, the regulator said.
The SBP said application of the code was expected to address weaknesses in business practices with a view to foster stronger market resilience.
