The
Presidents/Chief Executives,
All
Banks/DFIs
Dear
Sirs/Madam,
PLACEMENT
OF FUNDS UNDER FE-25 DEPOSITS
PRUDENTIAL REGULATIONS FOR CORPORATE AND COMMERCIAL BANKING
Please
refer to the Prudential Regulations issued vide BPD circular
No 35 dated 28th October 2003.
2.
It has been decided to replace Para 3 of Regulation 0-5
with the following;
“Placement
of funds of FE-25 deposits with any one bank / financial
institution, whether in Pakistan or abroad, shall be subject
to the following conditions;
(a) The investing bank shall comply with Prudential Regulation
R-1 (Annexure-1 Para F), which mentions different weightages
according to credit ratings of financial institutions.
(b) The investing bank will not place in a single institution
an amount exceeding 25% of the total investable funds, available
with the investing bank, under the FE-25 Deposit Scheme.
The conditions above shall, however, not be applicable on
placement of funds by the bank with its own branches overseas.
Furthermore, compliance with all other relevant Prudential
Regulations shall also be ensured.”
.
3.
All other instructions on the subject shall, however, remain
unchanged.
4.
Please acknowledge receipt.