The Presidents/Chief Executives
All Banks/ DFIs
Dear
Sirs/Madam,
Quarterly
& Half yearly financial statements
In
terms of Para 3 of Prudential Regulation No.XXIX regarding
“Responsibilities of Board of Directors” notified
vide BSD Circular No.15 dated 13th June, 2002,
all banks/DFIs are, interalia, required to follow the
‘Code of Corporate Governance’ issued by the SECP so long
as any provision thereof does not come into conflict with
any provision of the Banking Companies Ordinance, 1962,
Prudential Regulations and the instructions/guidelines issued
by the State Bank. Subsequently, BSD Circular Letter No
9 of August 4, 2003, was issued to emphasize upon financial
disclosure.
We reiterate that all banks/DFIs – listed or non-listed
– including branches of foreign banks and those which have
peculiar share holding structure, need to follow clause
XX and XXI of the Code of Corporate Governance. Clause XX
requires listed institutions to publish and circulate un-audited
financial statements along
with directors’ review on the affairs of the listed company
on quarterly
basis and clause XXI requires that all
listed companies shall ensure that half-yearly financial
statements are subjected to a limited scope review by the
statutory auditors.
All
banks/DFIs are required
to publish/circulate half-yearly financial statements, as
of 30th June 2003, latest by 31st
August 2003, under the Code of Corporate Governance. However,
in case of non-listed
banks/DFIs and foreign banks operating in Pakistan, last
date for publication/circulation of half-yearly statements,
as of 30th June 2003, is hereby extended up to
30th September 2003, for this half-year only.
In future, they should ensure the publication/circulation
of quarterly/half-yearly financial statements within stipulated
time of two months.
Further,
it is clarified that non-listed banks/DFIs may decide not
to circulate printed copies of quarterly/half-yearly financial
statements to all the members except SBP. In that event
they will have to ensure publication of the same in the
leading newspaper(s).
Please acknowledge receipt