The State Bank issued a circular to the banks mentioning the – CAF, conduct assessment framework. It is a series of concepts aimed at banks to opt for responsible banking practices in terms of treatment of customers from their panel.
This Conduct Assessment Framework has been directed to banks by SBP to put into effect from 1stJanuary. Not just this, the annual assessment should be done by banks by 31st December.
What is Conduct Assessment Framework?
As per State Bank of Pakistan, CAF is a took that will assess the code of conduct of banks with customers, a tool to self-assess themselves. The aim of conduct assessment framework is simple. It is easy to adopt by banks to allow themselves to check up with their diagnostic and mechanism for their simplistic treatment with customers (STC) in the best way.
The framework will help the banks to check up with their gray areas, that needs to be reviewed and improved in terms of catering their customers with proper services. The framework consists of three modules namely the product / services, cultural and consumer issues mechanism.
SBP believes that this framework will help the banks in long-term impacting customers positively.
Risk and Solution: The conduct risk is the most crucial, as believed by SBP. It directly affects the customers on decisions that go around benefiting or not, the bank. With the adoption of CAF, the proposition is believed to bring positive outlook in banks.
Monitoring: With an in-depth monitoring, SBP has directed banks to check up with devotion continuously and see how strategies and culture help up with fair treatment to customers by FTC.
Assessment & Application: Banks are responsible for keeping conduct policies if they looking for consumer protection. State Bank says that the assessment of banks on their FTC is done by tools of research.