State Bank of Pakistan - The Central Bank

Minimum Capital requirements for Banks

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5. SUBMISSION OF RETURNS

Every banking company shall submit to the State Bank a half yearly return commencing from the half year ending 31^st Decembe3r, 1997 on the format given in the enclosed Appendix within a period of two months from the close of each half year ending 30^th June / 31^st December. The return should be certified by the external auditors of the banking company and duly signed by its authorized signatory (ies).

PENALTY FOR NON-COMPLIANCE
A banking company failing to meet the minimum capital requirements shall render itself liable to levy of penalty under the relevant provisions of the Banking Companies Ordinance, 1962.
A banking company failing to submit the half-yearly return within the stipulated time or submit a wrong statement shall also render itself liable to levy of penalty under Banking Companies Ordinance, 1962.

APPENDIX TO BPRD CIRCULAR No.36 DATED 4^thNOVEMBER, 1997.

NAME OF BANK :

POSITION AS AT :

HALF-YEARLY STATEMENT ON

MINIMUM CAPITAL REQUIREMENTS

CAPITAL / CAPITAL ADEQUACY RATIO

(Rupees in Thousands)

S.NO

ITEMS

AMOUNT

Equity Fully Paid-up capital/Capital deposited with SBP
Balance in Share Premium Account
Reserve for Bonus Premium Account
General Reserves as disclosed on the Balance Sheet
Un-appropriated/ unremitted profits (net of accumulated losses, if any)

Sub-Total (1.1 to 1.5)

Less :

Intangible Assets (to be specified)
Investments in equity of subsidiary companies engaged in banking and financial activities not consolidated in the balance sheet
Shortfall in Provisions required against Classified assets
Sub-Total (1.7 to 1.9)
TOTAL EQUITY (1.6- 1.10)

Supplementary Capital

Freely available General Provisions or reserves for loan losses-upto maximum of 1.25% of Risk assets (see para 4 (iv) of Instructions)
Revaluation reserves-eligible upto 50% (see para 4 (vi) of Instructions)
Undisclosed reserves (see para 4 (v) of Instructions)
Subordinated debt –upto maximum of 50% of Total Equity –Item 1.11 (see para 4 (iii) of Instructions)
Total Supplementary Capital (2.1 to 2.4)
Total Supplementary Capital eligible for MCR

(Maximum upto 100% of Total Equity-see para 4(I) of Instructions

TOTAL CAPITAL (1.11 + 2.6)

Risk Assets and Off-Balance Sheet Items

Adjusted value of funded risk assets i.e., On-Balance Sheet Items

(To tally with total of Part B)

Adjusted value of non-funded risk exposure i.e. Off-Balance Sheet Items

(To tally with total of Part C)

TOTAL RISK-WEIGHTED ASSETS/EXPOSURES (3.1 +3.2)
MINIMUM CAPITAL REQUIRED

(8% of Total Risk-Weighted Assets / Exposures – Item 3.3)

Total Capital held (As at item 2.7 above)
Capital Surplus / (Shortfall )- (3.4 – 3.5)
CAPITAL ADEQUACY RATIO (%age of 3.5 to 3.3)

xxxxx

PART-B

RISK-WEIGHTED ASSETS –ON-BALANCE SHEET ITEMS

(Rupees in Thousands)

TOTAL
* 0%, 10%, 20% or 50% as may be prudently determined by the banking company.

S.NO

ITEMS

BOOK VALUE

RISK WEIGHTS%

ADJUSTED VALUE

1

2

3

4

5

6

7

8
Cash (including approved Foreign Currencies and Gold bullion)
Balances with Central Banks :

With State Bank of Pakistan

With Other Central Banks

Balances with other Banks (including Term Deposits /

Certificates of Deposit) :

With Scheduled Banks in Pakistan

With Banks outside Pakistan

Money at Call & Short notice in Pakistan

With Scheduled Banks

Others

Investments in :

Federal Govt. Securities

Provincial Govt. Securities

Shares of :

Enterprises owned or controlled by Fed. Govt.

Private Sector Enterprises

Debentures, Bonds, PTCs, TFCs, etc, of :

Enterprises owned or controlled by Feb. Govt.

Guaranteed by Federal Govt./SBP

Not Guaranteed by Federal Govt./SBP

Private Sector Enterprises

Other Investments (to be specified)

Loans & Advances including Bills Purchased / Discounted
Less Cash Margin and Govt. Securities held) to :

Federal Government

Provincial Government

Loans guaranteed by Federal Govt./SBP

Enterprises Owned or Controlled by Federal Govt.

Claims on or guaranteed by banks of international repute incorporated in G-10 countries

Private Sector Enterprises

Loans fully secured by mortgage of residential or commercial property

Staff loans

Others (to be specified)

Fixed Assets (Net of Accumulated Depreciation)

Assets deducted from Capital :

Intangible Assets

Unconsolidated Investment in subsidiary companies engaged in banking and financial activities

Other Assets

Taxation ( Net of Provisions)

Accrued Interest/Profit on Govt. Securities

Others (to be specified)

0%

0%

0%

20%

20%

20%

100%

0%

0%

0% - 50% *

100%

0%

0% -50%

100%

100%

0%

0%

0%

0% -50% *

20%

100%

50%

0%

100%

100%

0%

0%

0%

0%

100%

[Page: 1 2 3 4 5 ]

Minimum Capital requirements for Banks

[Page: 1 2 3 4 5 ]

5. SUBMISSION OF RETURNS

Every banking company shall submit to the State Bank a half yearly return commencing from the half year ending 31^st Decembe3r, 1997 on the format given in the enclosed Appendix within a period of two months from the close of each half year ending 30^th June / 31^st December. The return should be certified by the external auditors of the banking company and duly signed by its authorized signatory (ies).

PENALTY FOR NON-COMPLIANCE
A banking company failing to meet the minimum capital requirements shall render itself liable to levy of penalty under the relevant provisions of the Banking Companies Ordinance, 1962.
A banking company failing to submit the half-yearly return within the stipulated time or submit a wrong statement shall also render itself liable to levy of penalty under Banking Companies Ordinance, 1962.

APPENDIX TO BPRD CIRCULAR No.36 DATED 4^thNOVEMBER, 1997.

NAME OF BANK :

POSITION AS AT :

HALF-YEARLY STATEMENT ON

MINIMUM CAPITAL REQUIREMENTS

CAPITAL / CAPITAL ADEQUACY RATIO

(Rupees in Thousands)

S.NO

ITEMS

AMOUNT

Equity Fully Paid-up capital/Capital deposited with SBP
Balance in Share Premium Account
Reserve for Bonus Premium Account
General Reserves as disclosed on the Balance Sheet
Un-appropriated/ unremitted profits (net of accumulated losses, if any)

Sub-Total (1.1 to 1.5)

Less :

Intangible Assets (to be specified)
Investments in equity of subsidiary companies engaged in banking and financial activities not consolidated in the balance sheet
Shortfall in Provisions required against Classified assets
Sub-Total (1.7 to 1.9)
TOTAL EQUITY (1.6- 1.10)

Supplementary Capital

Freely available General Provisions or reserves for loan losses-upto maximum of 1.25% of Risk assets (see para 4 (iv) of Instructions)
Revaluation reserves-eligible upto 50% (see para 4 (vi) of Instructions)
Undisclosed reserves (see para 4 (v) of Instructions)
Subordinated debt –upto maximum of 50% of Total Equity –Item 1.11 (see para 4 (iii) of Instructions)
Total Supplementary Capital (2.1 to 2.4)
Total Supplementary Capital eligible for MCR

(Maximum upto 100% of Total Equity-see para 4(I) of Instructions

TOTAL CAPITAL (1.11 + 2.6)

Risk Assets and Off-Balance Sheet Items

Adjusted value of funded risk assets i.e., On-Balance Sheet Items

(To tally with total of Part B)

Adjusted value of non-funded risk exposure i.e. Off-Balance Sheet Items

(To tally with total of Part C)

TOTAL RISK-WEIGHTED ASSETS/EXPOSURES (3.1 +3.2)
MINIMUM CAPITAL REQUIRED

(8% of Total Risk-Weighted Assets / Exposures – Item 3.3)

Total Capital held (As at item 2.7 above)
Capital Surplus / (Shortfall )- (3.4 – 3.5)
CAPITAL ADEQUACY RATIO (%age of 3.5 to 3.3)

xxxxx

PART-B

RISK-WEIGHTED ASSETS –ON-BALANCE SHEET ITEMS

(Rupees in Thousands)

TOTAL
* 0%, 10%, 20% or 50% as may be prudently determined by the banking company.

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