STATUTORY CASH RESERVE
In
terms of Section36(1) SBP Act, 1956, every scheduled bank
is required to maintain with State Bank a balance the amount
of which shall not at the close of business or any day be
less than such percentage of Time & Demand Liabilities
in Pakistan as may be determined by State Bank.
Presently
the requirement is 5% on weekly average basis subject to
daily minimum of 4% of Time & Demand Liabilities (reference
BPRD Circular No.27 dated 2nd July,1999).
STATUTORY
LIQUIDITY REQUIREMENT
In
terms of Section 29(1) of Banking Companies Ordinance, 1962
every banking company shall maintain in Pakistan in cash,
gold or un-encumbered approved securities valued at price
not exceeding "the lower of cost or the current market
price" an amount which shall not at the close of business
in any day be less than such percentage of the total of
its time & demand liabilities in Pakistan, as may be
notified by State Bank from time to time.
Presently
the requirement is 15% (excluding 5% statutory cash reserve)
of the total of its time and demand liabilities in Pakistan
(BPRD Circular No.26 dated 2nd July, 1999).
MAINTENANCE
OF LIQUIDITY AGANINST CERTAIN LIABILITIES
In
terms of Rule 6 of NBFIs Rules of Business, all NBFIs are
required to invest 14% of their liabilities defined in the
Rule, in Government Securities, NIT Units, shares of listed
companies or listed debt securities in the prescribed manner.
For the purpose of this rule, liabilities shall not include
NBFIs equity, borrowings from financial institutions including
accruals thereon, lease key money, deferred taxation not
payable within 12 months, dividend payable within two months,
advance lease rentals and deposits from financial institutions.
In addition, they are also required to maintain cash balance
with State Bank, which shall not be less than 1% of their
liabilities as defined above.
SUBMISSION
OF ANNUAL AUDITED ACCOUNTS BY NBFIs
Under
Rule 17 of NBFIs Rule of Business, all NBFIs are required
to invest to submit their annual audited accounts within
a period of 6 months after the close of their accounting
year.
ANNUAL
ACCOUNTS
At
the expiration of each calendar year every banking company
incorporated in Pakistan, in respect of all business transacted
by it, and every banking company incorporated outside Pakistan,
in respect of all business transited through its branches
in Pakistan, shall prepare with reference to that year a
balance-sheet and profit and loss account as on the last
woking day of the year in the prescribed forms(Section 34
of Banking Companies Ordinance, 1962).
SUBMISSION
OF RETURNS.
The
accounts and balance-sheet referred to in section 34 together
with the auditor’s report as passed in the annual General
Meeting shall be published in the prescribed manner, and
three copies thereof shall be furnished as returns to the
State Bank within three months of the close of the period
to which they relate (Section 36 of Banking Companies Ordinance,
1962).
MINIMUM
CAPITAL REQUIREMENTS
In
terms of Section 13 of Banking Companies Ordinance, 1962
no banking company shall commence business unless it has
a minimum paid up capital as may be determined by the State
Bank or carry on business unless the aggregate of its capital
and unencumbered general reserves is of such minimum value
within such period as may be determined and notified by
the State Bank from time to time for banking companies in
general or for a banking company in particular.
As
present, all banks operating in Pakistan are required to
maintain capital and unhecumbered general reserve, the value
of which is not less than 8% of their risk weighted assets.
Additionally they are also required to maintain a minimum
paid up capital of Rs.500 million.
