The
Presidents/Chief Executives
All Banks/DFIs
Dear
Sirs/Madam,
Master
Circular on Financial Disclosure – Frequency & Timelines
Present day banking and other financial services are subject
to high standards of corporate governance and risk management.
The purpose of all these efforts lies in making the business
as transparent as possible and inline with the best international
standards & practices of financial disclosure.
2
To maximize financial disclosure, the corporate sector, including
banks / DFIs, have been issued instructions in the form of
various sections of the Companies Ordinance, 1984, Banking
Companies Ordinance (BCO), 1962, listing requirements of the
stock exchanges, Code of Corporate Governance of the SECP
and the circulars issued by State Bank of Pakistan (SBP).
3
In order to facilitate banks / DFIs to ensure compliance of
statutory / regulatory requirements regarding financial disclosure,
it has been decided to issue this Master Circular containing
consolidated instructions on the subject. All banks / DFIs,
listed or non-listed – including branches of foreign
banks and those which have peculiar shareholding structure,
are advised to follow the instructions as given below:
3.1
At the end of each accounting year, all banks are required
to prepare their annual financial statements in the prescribed
manner, as on the last working day of that year. These financial
statements together with the auditor’s report, as passed
in the Annual General Meeting, shall be published and circulated
as well as furnished, as returns, to the SBP as prescribed
in the BCO, 1962.
Further, all DFIs are also required to prepare their annual
financial statements at the end of each accounting year as
on the last working day of that year. These financial statements
together with the auditor’s report, as passed in the
Annual General Meeting, shall be circulated to the shareholders
and furnished as returns to the SBP within three months of
the close of the period to which they relate. Furthermore,
an abridged version of the financial statements shall also
be published in the newspaper(s) within the stipulated time.
3.2
For 1st and 3rd quarter, quarterly un-audited financial statements,
along with directors’ review, shall be prepared by all
banks / DFIs, including the branches of foreign banks, within
45 days of the close of the quarter to which they relate.
These quarterly financial statements shall be circulated by
domestic banks / DFIs to their shareholders. Furthermore,
an abridged version of the quarterly financial statements
shall be published in the newspaper(s) by all banks / DFIs,
including branches of foreign banks, within the aforesaid
time.
3.3
Half yearly (2nd quarter) financial statements, with limited
scope review by the statutory auditors, shall be prepared
by all banks / DFIs, including the branches of foreign banks,
within two months of the close of the half-year (2nd quarter).
These half-yearly statements shall be circulated to the shareholders
by domestic banks / DFIs. Furthermore, an abridged version
of the half-yearly financial statements shall be published
in the newspaper(s) by all banks / DFIs, including branches
of foreign banks, within the aforesaid time
4
Besides above, other requirements of Code of Corporate Governance
regarding financial disclosure shall remain applicable, provided
they are not inconsistent with the SBP’s instructions.
Moreover, Quarterly Report of Condition, and other returns
/ reports, presently being submitted by the banks / DFIs to
SBP shall continue to be submitted as required.
Please acknowledge receipt.
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