Circulars/Notifications - Banking Policy & Regulations Department  
 BPRD Circular Letter No. 11 of 2017
April 24, 2017

The Presidents/Chief Executive Officers,
All Banks/DFIs

Dear Sir(s)/Madam,

Amendment in Regulation R-1 of Prudential Regulations for Corporate / Commercial Banking - Large Exposure Limit

Please refer to BPRD Circular No.06 of 2014 whereby revised Prudential Regulations (PRs) for Corporate / Commercial Banking were circulated. Following amendments in the Para 4 of regulation R-1 (Large Exposure Limit) of PRs for Corporate/Commercial Banking have been made. Accordingly, the revised Para 4 of regulation R-1 is amended as follows:

“4. Large Exposure Limit:

The aggregate amount of large exposures of a bank/DFI shall not, at any point in time, exceed 50% of its total fund based and non-fund based exposure, in finance facilities and investments (excluding investment in government securities and loans secured against GoP guarantees). Large exposure shall not be applicable to investments in government securities and loans secured against GoP guarantees
Banks / DFIs are advised to follow guidelines given at Para 1(a) to 1(c) of Annexure-I of PRs for Corporate / Commercial Banking, to calculate the large exposure limits.
The aggregate large exposure limit of 50% will, however, not be applicable on banks operating, in Pakistan, with less than ten branches.”


2. Banks/DFIs, which are non-compliant to the amended regulation on large exposure, shall achieve the compliance thereagainst within nine months from the issuance of this circular letter. Such banks/DFIs, shall present time-bound compliance plan to Board of Directors within next three months.

3. Banks/DFIs are further advised to follow the amended regulation in letter and spirit. Any deviation or non-compliance of the same shall attract punitive action under the relevant provisions of the Banking Companies Ordinance, 1962.

4. All other instructions on the matter will, however, remain unchanged.

5. Please acknowledge receipt.

Yours truly,


(Muhammad Akhtar Javed)
Head of Department

About SBP
Economic Data
Press Releases
Laws & Regulations
Monetary Policy
Help Desk
SBP Videos
Contact us
What's New?
Online Tenders
Web Links

Educational Resources
Regulatory Returns
Rupey ko Pehchano
Zahid Husain Memorial Lecture
Best view Screen Resolution : 1024 * 768
Copyright © 2016. All Rights Reserved.