The Presidents/Chief Executives,
All Banks/DFIs
Dear
Sirs/Madam,
PRUDENTIAL
REGULATIONS FOR CORPORATE /COMMERCIAL BANKING
Please
refer to the Prudential Regulations issued vide BPD Circular
No. 35 dated 28th October 2003
2. It has been decided with immediate effect to replace
Para 2 of Regulation R-4 ‘Limit on Exposure Against
Unsecured Financing Facilities’ in Prudential Regulations
for Corporate/Commercial Banking, as under:
“For
the purpose of this regulation, following shall be excluded
/ exempted from the per party limit of Rs 500,000/- on the
clean facilities:
(a)
Facilities provided to finance the export of commodities
eligible under Export Finance Scheme.
(b) Financing covered by the guarantee of Pakistan Export
Finance Guarantee Agency.
(c) Loans / advances given to the employees of the banks
/ DFIs in accordance with their entitlement / staff loan
policy.
(d) Investment in COIs/ inter bank placements with NBFCs,
provided the investee NBFC is rated at least “A”
or equivalent by a credit rating agency on the approved
panel of the State Bank of Pakistan or Standard &
Poors, Moody’s and Fitch-Ibca.”
3.
All other instructions on the subject will, however, remain
unchanged.
4.
Please acknowledge receipt.