In term of Circular No. BCD(1)18/27-63
dated the 22nd October, 1963 banks are required
to maintain assets in Pakistan not less than 89% 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, any point in time,
exceed 15% of its time and demand liabilities specified in
the said Form X. All other assets financed from 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 make itself liable to action by the State Bank
under the relevant sections of the Banking Companies Ordinance,
1962.
Please acknowledge receipt.
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