It
may be recalled that in terms of the instructions on the subject
notified vide BPRD Circular No. 17 dated the 18th
May, 1999, liquidity ratio was reduced from 15.0 per cent
of total demand and time liabilities to 13.0 per cent.
2.
In suppression of the above instructions, and in terms of
the powers conferred upon State Bank of Pakistan under Section
29 of the Banking Companies Ordinance, 1962, it has been decided
to revert back to the requirement operative before May 19,
1999 and, accordingly, effective from 12th July,
1999, every banking company shall maintain in Pakistan in
cash (excluding Statutory Cash Reserves under section 36 (1)
of the State Bank of Pakistan Act, 1956) gold or unencumbered
approved securities to be valued in a manner as provided for
under the said section an amount which shall not at the close
of business on any day be less than 15.0 per cent of the total
of its time and demand liabilities in Pakistan.
3.
Other relevant instructions shall, however, remain unchanged.
Please acknowledge receipt.
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