In exercise of the powers vested under Section 10 of the Microfinance Institutions Ordinance, 2001 the State Bank of Pakistan (SBP) has decided to revise the minimum capital requirements for Microfinance Banks (MFBs). Accordingly, Prudential Regulation No.4 of the Prudential Regulations for MFBs has been substituted as under with immediate effect:
“Minimum Capital Requirements
1) Microfinance Banks (MFBs) shall maintain a minimum paid up capital, free of losses, of not less than:
i) One hundred million rupees for MFBs licensed to operate in a specified district;
ii) One hundred and fifty million rupees for MFBs licensed to operate in a specified region;
iii) Two hundred and fifty million rupees for MFBs licensed to operate in a specified province; and
iv) Five hundred million rupees for MFBs licensed to operate at national level.
2. All MFBs are required to maintain at all times the minimum paid up capital (free of losses) as prescribed in Para 1 above. However, in case any of the existing MFB does not meet the prescribed minimum paid up capital requirement, it shall make up the shortfall latest by 31st December, 2008.