The
Presidents/Chief Executives
All Banks
Dear
Sirs / Madam,
MAINTENANCE
OF CASH RESERVE REQUIREMENT (CRR) AND
STATUTORY LIQUIDITY REQUIREMENT (SLR)
Please
refer to the BSD Circulars No.06 and 08 dated May 08, 2003
and May 28, 2004 respectively on the captioned subject.
2) Presently, banks are required to meet Cash Reserve Requirement
(CRR) of 5% on weekly average basis (subject to daily minimum
of 4%) and Statutory Liquidity Requirement (SLR) of 15%
of their time and demand liabilities. Both CRR & SLR
are calculated on the basis of total Time and Demand Liabilities,
without making any distinction on the basis of tenor of
liabilities.
3)
In exercise of the powers conferred upon the State Bank
of Pakistan under Section 36 of the State Bank of Pakistan
Act, 1956 and Section 29 of the Banking Companies Ordinance,
1962, SBP has decided to revise the reserve requirements
with effect from 22nd July, 2006 as under:-
Cash
Reserve Requirement (CRR)
a) Weekly average of 7% (subject to daily minimum of 4%)
of total Demand Liabilities (including Time Deposits with
tenor of less than 6 months); and
b)
Weekly average of 3% (subject to daily minimum of 1%)
of total Time Liabilities (including Time Deposits with
tenor of 6 months and above).
Statutory Liquidity Requirement (SLR)
18% (excluding CRR) of total Time and Demand Liabilities.
(In the event of premature withdrawal of Time Deposits
of over 6 months, banks would be required to maintain,
from the date of withdrawal and for the period for which
they have availed the benefit of lower CRR, an additional
CRR equivalent to 4% of the amount of such pre-mature
withdrawal).
4)
Further, all Time and Demand Liabilities, except borrowings
from SBP and interbank borrowings, shall be accounted for
in the calculation of Time and Demand Liabilities for the
purpose of CRR and SLR. The break-up of Time and Demand
Liabilities to be used for calculating the required CRR
and SLR is given in the enclosed annexure-A. Moreover, the
separate CRA and SCRA in US$ against FE-25 Deposits would
continue to be maintained at the prescribed rate.
5)
All other instructions contained in the above-mentioned
Circulars shall, however, remain unchanged.
Please acknowledge receipt.
Encl: As above
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