The Presidents/Chief Executive Officers
Dear Sirs/ Madams,
REGULATORY RELIEF TO DAMPEN THE EFFECTS OF COVID - 19
Coronavirus (COVID-19) has been emerging as a strain to the global economy including that of Pakistan. In this context, banks/ DFIs are expected to continue providing financing/credit facilities to their customers who are experiencing temporary financial constraints. In view of this evolving situation and to enable the banks/DFIs to continue funding the real economy, following Basel Capital Adequacy measures are being implemented with immediate effect:
The Capital Conservation Buffer (CCB) as prescribed vide BPRD Circular No. 6 of August 15, 2013 has been reduced, for the time being, from its existing level of 2.50% to 1.50%, till further instructions.
The existing regulatory retail portfolio limit of Rs. 125 million as prescribed vide BPRD Circular No. 8 of December 22, 2017 has been enhanced to Rs. 180 million.
2. All other instructions, on the subject, shall remain unchanged.
3. Please acknowledge receipt.