950517
STATE BANK OF PAKISTAN BANKING POLICY & REGULATIONS DEPARTMENT CENTRAL DIRECTORATE KARACHI
BPRD Circular No. 11
17th May, 1995
All Banks,
Dear Sirs,
PRUDENTIAL REGULATIONS
In terms of Prudential Regulations issued by the State bank on 07-01-1992 banks were allowed to continue to accommodate their customers to the extent of facilities already availed by them prior to the date of issue of the above referred circular and the borrowers were given certain time frame to regularize their position so that they are in full compliance with the Prudential Regulations.
2. Some borrowers, especially Sick Units, were facing difficulties in regularizing their position within the time frame referred to in par 1 above. They sought relaxation in the Prudential Regulations, specially where the lending banks had agreed to restructure/re-schedule the loans, though their bankers and Pakistan Banking Council. The nature and volume of such cases called for a review and general relaxation in Prudential Regulations as opposed to case by case approach.
3. In view of the position stated in para 2 above the State Bank conducted a thorough review of the Prudential Regulations in consultation with the representatives of banks and Trade and Industry and issued instructions extending the period for regularizing the position upto 30-06-1998 (vide BPRD Circular No. 10/121.03-95 & 14/121.04-95 dated 2-5-9 and 3-5-95 respectively).
