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050407

STATE BANK OF PAKISTAN - BANKING POLICY DEPARTMENT

BPD Circular No. 14 of 2005
April 07, 2005 



The Presidents/Chief Executives,
All Banks/DFIs


Dear Sirs/Madam,

Please refer to the Prudential Regulations issued vide BPD Circular No. 35 dated 28th October 2003

2. It has been decided with immediate effect to replace Para 2 of Regulation R-4 ‘Limit on Exposure Against Unsecured Financing Facilities’ in Prudential Regulations for Corporate/Commercial Banking, as under:
“For the purpose of this regulation, following shall be excluded / exempted from the per party limit of Rs 500,000/- on the clean facilities:
(a) Facilities provided to finance the export of commodities eligible under Export Finance Scheme.
(b) Financing covered by the guarantee of Pakistan Export Finance Guarantee Agency.
(c) Loans / advances given to the employees of the banks / DFIs in accordance with their entitlement / staff loan policy.
(d) Investment in COIs/ inter bank placements with NBFCs, provided the investee NBFC is rated at least “A” or equivalent by a credit rating agency on the approved panel of the State Bank of Pakistan or Standard & Poor's, Moody’s and Fitch-Ibca.”
3. All other instructions on the subject will, however, remain unchanged.
4. Please acknowledge receipt.


Yours faithfully,
Sd/-

(MUHAMMAD KAMRAN SHEHZAD)
DIRECTOR
 

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