Circulars/Notifications - Banking Supervision Department  
 BPRD Circular No. 26
July 2, 1999  

All Scheduled Banks

Dear Sirs,

Maintenance of Liquid Assets in Pakistan
(Restoration of the requirements
in place before May 19, 1999)

 

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.



Yours faithfully,
(Mansur-ur-Rehman Khan)
Director

       
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