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020101
STATE BANK OF PAKISTAN BANKING SUPERVISION DEPARTMENT CENTRAL DIRECTORATE KARACHI
BSD
Circular No.01
1st January, 2002
All Banks
Dear Sirs,
MINIMUM CAPITAL REQUIREMENTS
Please refer to BPRD Circular
No.36 dated 4th November 1997 on the above subject.
2. The instructions contained in paragraph 4 (iii) of the Annexure to the above BPRD
Circular of 1997 is substituted as under:
Sub-ordinated debt will be limited to a maximum of 50% of the amount of equity and will
also include rated and listed subordinated debt instruments (like TFCs/Bonds) raised in
the capital market. To be eligible for inclusion in the supplementary capital, the
instrument should be fully paid up,
unsecured, sub-ordinated as to payment of principal and profit to all other indebtedness
of the bank, including deposits and should not be redeemable before maturity without prior
approval of the SBP. Further the bank should also have maintained the Minimum Paid up
Capital as prescribed by SBP from time to time.”
3. The banks before issuing any subordinated debt instruments (like TFCs/Bonds), to
qualify for inclusion in supplementary (Tier-II) capital, will be required to obtain
approval of the State Bank.
4. The Annexure to this circular contains rules
relating to sub-ordinated debt instruments which shall form part of the regulations
relating to calculation/other requirements on minimum capital.
5. Other instructions on the subject shall, however remain unchanged.
Please acknowledge receipt.
Yours faithfully,
(KAZI ABDUL MUKTADIR)
Director
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