State Bank accords approval to ASA Microfinance Bank
(Pakistan) to start operations
ASA Microfinance Bank (Pakistan) Limited has received
approval from the State Bank of Pakistan (SBP) to initiate microfinance lending
operations nationwide. This development marks ASA Microfinance Bank as the 12th
Microfinance Bank (MFB) to operate in Pakistan.
Licensed under the Microfinance Institutions Ordinance 2001,
ASA Microfinance Bank (Pakistan) Limited is a wholly owned subsidiary of ASA
International Group plc, acknowledged as one of the world's largest
international microfinance institutions.
Partnerships
with stakeholders helping expand operations: CEO Khushhali Microfinance Bank
The State Bank of Pakistan highlights the significant role
played by microfinance banks (MFBs) in catering to a large number of
microcredit borrowers and depositors. While MFBs account for approximately
three percent of the total advances of the banking system, they hold a
substantial 58.6 percent share in terms of the number of domestic borrowers.
This underscores their vital contribution to Pakistan's credit market,
financial inclusion, and overall economy.
With the commencement of business operations by ASA
Microfinance Bank, it is anticipated that the market share of SBP-regulated
MFBs within the broader microfinance sector will see an increase. The bank's
activities are expected to align with the poverty alleviation and financial
inclusion objectives outlined in the Microfinance Institution Ordinance, 2001.
Mobilink
Microfinance Bank recognized a leader in diversity, equity, and inclusion
Notably, ASA Microfinance Bank (Pakistan) Limited is poised
to make a meaningful impact on gender mainstreaming and female empowerment.
Focusing on women across its international network, the bank aims to provide
small, socially responsible loans to low-income women entrepreneurs in
less-privileged and unbanked segments of society. The State Bank of Pakistan
anticipates that ASA Microfinance Bank's initiatives will contribute
significantly to the goals of poverty alleviation and financial inclusion in
the country.
Source: Profit Pakistan