In
order to align the regulatory framework to changing
business environment and the best international practices,
the State Bank of Pakistan, in consultation with stakeholders,
has revised the Prudential Regulations on Risk Management
and Operations for Corporate & Commercial Banking.
The revised regulations aim to assist banks/DFIs in
better addressing their unique risk factors and dynamic
environment by giving more discretion in business decisions.
These regulations also describe minimum prudential
benchmarks in critical risk areas to balance the considerations
of financial stability of banks/DFIs vis-à-vis
diversity and innovation.
2)
These Prudential Regulations do not supersede directives
and instructions issued by the State Bank in respect
of areas not covered under these regulations. Banks/DFIs
that are compliant to the revised or new limits as
introduced in these regulations shall follow the same
instantly. However, such institutions which are in
breach of these limits will have to achieve the compliance
by 30-06-2015, unless otherwise specifically mentioned
in the regulations
3)
Banks/DFIs are advised to ensure meticulous compliance
of these Regulations in letter and spirit. Any non-compliance
or circumvention of the requirements will attract punitive
action under the provisions of the Banking Companies
Ordinance, 1962.
Please
acknowledge receipt.
Encl:
Revised Prudential Regulations Corporate / Commercial
Banking on Risk Management and Operations.