All
Banks
Dear
Sirs,
PRUDENTIAL
REGULATION - XXIV
MAINTENANCE
OF ASSETS IN PAKISTAN
Please
refer to BSD Circular No 20 dated 29th May, 1999 on the captioned
subject.
2.
In exercise of powers vested under Section 30 of the Banking
Companies Ordinance, 1962, it has been decided to give more
space to the banks to get advantage of removal of nostro limits,
that every bank, effective from 2nd March, 2002, shall maintain
in Pakistan not less than 80% (as against the present ratio
of 85%) 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, at any point in
time, exceed 20% 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.
Other instructions on the subject will remain the same.
Please acknowledge receipt.
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