Moreover a special law, the Financial Institutions (Recovery of Finances) Ordinance, 2001 was enacted with a view to facilitate speedy recovery of loans; and  •  Fourth, introduced both financial innovation and diversification in banking sector by allowing entry of Islamic and microfinance industry, women’s banks and SME bank;  •  Fifth, SBP overhauled its prudential regulatory and supervisory framework setting in place international standards and new regulations for specific sectors such as SMEs, agriculture, and microfinance and steadily increased minimum capital requirements of the commercial banks to at least Rs 6 billion by the year 2009.
SBP further issued risk management guidelines, e-banking and credit information system and has developed Institutional Risk Assessment Framework (IRAF) to enhance collaboration among the supervisory departments and efficient usage of all possible information available on banks and DFIs.