BSD
Circular No. 05 of 2008 |
February 14, 2008 |
The
Presidents/Chief Executives
All Banks/DFIs
Dear
Sirs / Madam,
Minimum
Capital Requirements – Implementation of Basel II
1. Please refer to the BSD Circular
No. 08 dated June 27, 2006 regarding implementation of
Basel II in Pakistan.
2. In order to clarify the definitions
of the Corporate and Retail exposures as provided in the
Section No. 2.1.3 and 2.1.5 respectively, of the above
referred Circular, it is advised that:-
a. The upper limit of Retail exposures
has been raised to Rs. 75 million; and
b. All Public limited companies incorporated
under Companies Ordinance, 1984 or any other statute will
not fall under the definition of Retail, regardless of
their exposure.
Revised definitions are attached.
3. With regard to staff loans of banks/DFIs, it is clarified
that staff housing finance qualifying as per definition
2.1.6 ‘Residential Mortgage Finance’ be treated
as residential mortgage. Other staff loans shall be treated
as Retail or in any other categories provided respective
requirements are fulfilled.
4. All other instructions on the subject shall, however,
remain unchanged.
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Yours faithfully,
(LUBNA FAROOQ MALIK)
DIRECTOR
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