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PRUDENTIAL REGULATION- -- XXIV
MAINTENANCE OF ASSETS IN PAKISTAN

In terms of Circular No. BCD(1)18/27-63 dated the 22nd October, 1963 banks are required to maintain assets in Pakistan not less than 80% of their time and demand liabilities.

2. In exercise of powers vested under Section 30 of the Banking Companies Ordinance, 1962 it is hereby directed that every bank, effective from 5th June, 1999, shall maintain in Pakistan not less than 85% (as against the present ratio of 80%) of the assets created by it against such time and demand liabilities as specified in Part-A of Form X (prescribed under Rule 17 of the Banking Companies Rules, 1963). Accordingly, assets held abroad by any bank shall not, at any point in time, exceed 15% of its time and demand liabilities specified in the said Form X. All other assets financed form sources other than time and demand liabilities specified in the said Form X shall be held within Pakistan.

3. Banks holding assets abroad in excess of the above limits at the close of business on 29th May, 1999 shall provide details of the excess amount of assets to the State Bank by the close of business on Monday the 31st May, 1999 and shall take necessary steps to regularize the position at the earliest but not later than 30th June, 1999.

4. Any bank violating the above directive will itself liable to action by the State Bank under the relevant sections of the Banking Companies Ordinance, 1962.

Please acknowledge receipt.

Yours faithfully,
(MANSUR-UR-REHMAN KHAN)
Director

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