ASA Microfinance Bank Limited Granted Nationwide Operations Approval by SBP
In a recent announcement on Tuesday, the State Bank of Pakistan (SBP) has officially granted ASA Microfinance Bank (Pakistan) Limited the authority to initiate microfinance lending operations across the nation starting November 13, 2023.
Karobar
ASA Microfinance Bank (Pakistan) Limited, a wholly owned subsidiary of ASA International Group plc., has been licensed by the SBP under the Microfinance Institutions Ordinance 2001. Notably, ASA International Group plc. is globally recognized as one of the largest international microfinance institutions.
This development marks a significant milestone for ASA Microfinance Bank (Pakistan) Limited, positioning it as the 12th Microfinance Bank (MFB) to operate within Pakistan.
The SBP emphasized the pivotal role MFBs play in serving a vast number of microcredit borrowers and depositors, constituting approximately three percent of the total advances of the banking system. However, in terms of the number of domestic borrowers, MFBs hold a substantial 58.6 percent share, underscoring their significance in Pakistan's credit market, financial inclusion, and overall economy, as highlighted by the central bank.
ASA Microfinance Bank (Pakistan) Limited's entry into active business is anticipated to contribute to the market share growth of MFBs regulated by the central bank within the broader microfinance sector.
Given ASA Microfinance Bank's international focus on women, the central bank expects it to play a crucial role in gender mainstreaming and female empowerment. The bank aims to achieve this by providing small, socially responsible loans to low-income women entrepreneurs in less-privileged and unbanked segments of society.
The SBP envisions that ASA Microfinance Bank (Pakistan) Limited will actively contribute to the poverty alleviation and financial inclusion mandates outlined in the Microfinance Institution Ordinance of 2001.
