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” issued 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.
We have been receiving queries from Non-listed banks/DFIs,
including those who have peculiar share holding structure,
that whether they need to follow clause XX and XXI of the
Code of Corporate Governance of SECP or not. 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.
To enhance financial disclosure and transparency, all the
institutions – listed and non-listed – are advised to follow
clauses XX and XXI of the Code of Corporate Governance of
SECP. However, as far as Clause XX is concerned banks/DFIs
may decide not to circulate printed copies of the un-audited
financial statements alongwith directors’ review on the
affairs of the company, on quarterly basis, to all the members
except SBP, SECP and stock exchanges. In that event they
will have to ensure publication of the same in the leading
newspaper(s).
Please acknowledge receipt.