The Presidents / Chief Executives
All Banks / DFIs
Dear
Sirs / Madam,
PRUDENTIAL REGULATIONS FOR CORPORATE /COMMERCIAL BANKING
INVESTMENT IN COIs / INTER BANK PLACEMENTS WITH NBFCs
Please
refer to BPD Circular No. 14 dated April 7, 2005 on the
captioned subject.
2.
It has been decided with immediate effect to replace Para
2(d) of Regulation R-4 ‘Limit on Exposure Against
Unsecured Financing Facilities’ in Prudential Regulations
for Corporate/Commercial Banking as under:
(d)
“Investment in COIs/inter bank placements with NBFCs,
provided the investee NBFC is rated ‘A+’, ‘A’
or ‘A-’ for long-term rating and at least ‘A2’
for short-term rating 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.