Please refer to BPRD Circular No. 06 dated June 26, 2014, whereby revised Prudential Regulations for Corporate / Commercial Banking were issued.
2. In order to provide enabling regulatory framework for channelizing financing to develop an efficient and standardized infrastructure for the storage of commodities, inter alia, to reduce spoilage of produce, following amendment in the Part-A: Definitions of Prudential Regulations for Corporate / Commercial have been incorporated regarding Electronic Warehouse Receipt under Collateral Management Companies Regulations, 2019 issued by the SECP.
Secured means exposure backed by liquid assets, pledge stock - including pledging against Electronic Warehouse Receipt (EWR) as defined in Collateral Management Companies Regulations, 2019 issued by the SECP, mortgage of land, plant, building, machinery or any other fixed assets, hypothecation of stock (inventory), trust receipt, assignment of receivable, lease rentals, and contact receivables but does not include hypothecation of household goods. The unsecured exposure will be considered as clean.
3. The above amendment in Prudential Regulations shall be applicable with immediate effect. Banks / DFIs are advised to ensure meticulous compliance of revised instructions in letter and spirit. Any deviation or non-compliance of Prudential Regulations shall attract punitive action under the relevant provisions of Banking Companies Ordinance, 1962.