addition to the risks that banks generally carry on
their books, they are also exposed to risks arising
out of their relationship with associated undertakings.
One of the Core Principles of Effective Banking Supervision
issued by the Basel Committee on Banking Supervision
also necessitates consolidated supervision of banks,
covering all risks, whether they are carried on their
own books or on the books of associates. It is, therefore,
imperative to monitor and assess the risks posed by
Accordingly, the State Bank is introducing the following
Details of related parties;
B. Details of exposures to and from related parties;
C. Details of related party dealings and transactions;
Details of equity exposures;
Details of capital adequacy of subsidiaries; and
Latest available financial statements of subsidiaries
and associates (as defined in the IAS-28)
The formats of these returns (A to E above) are attached
herewith. All banks incorporated in Pakistan are advised
to submit these returns/statements on half-yearly basis,
effective from half year ending June 30, 2012 and onward.
These returns should reach this department within 45
days of the close of each half-year ending June 30 and
December 31. However, banks may submit the returns for
half-year ending June 30, 2012 within 45 days from the
date of this circular.
Please acknowledge receipt.