LAHORE - The Union of Small and Medium Enterprises (Unisame) has asked the Governor State Bank of Pakistan (SBP) Syed Salim Raza to take the notice of violation as the commercial banks are not reducing mark-up rate although the inter-bank borrowing rate has been reduced considerably due to efforts of SBP. President Unisame Zulfikar Thaver said that the loans sanctioned letters issued by the commercial banks to the borrowers indicate the inter-bank borrowing rate as the basis and the mark-up rate is based on the inter-bank borrowing rate on which the banks lend to one another and the commercial banks usually add 2 to 3 percent over the inter-bank rate and lend to borrowers. When the inter-bank rate increases, the banks immediately increase the mark-up rate as we have received complaints from our SMEs that some banks even issued letters to the borrowers informing them that the mark-up rate has been revised although loans were sanctioned at lower rates but when the inter-bank rate falls, they did not reduce the mark up rate, he added. While drawing the attention of the SBP Governor to this fact, he said that the banks are financing the medium sector and not to the small because financing the small sector is the responsibility of the government. The banks pursue their commercial interest and since financing the small is not profitable for them they do not consider it worthwhile, he maintained. He further said that no bank has up till now, developed any product for the small sector and without concessionary finance the small sector could not be developed. He also urged the SBP to allow finance facility for the small sectors like export refinance on single digit rate of mark-up.