Circulars/Notifications - Banking Policy & Regulations Department  
 BPRD Circular Letter No. 41 of 2020
September 02, 2020

The Presidents / Chief Executive Officers,
All Banks / DFIs.



Dear Sir/Madam
,

Regulation R-1 of Prudential Regulations for Corporate/Commercial Banking - Exposure Limits

Please refer to BPRD Circular No. 06 of 2014, whereby, revised Prudential Regulations for Corporate/ Commercial Banking were issued and IH&SMEFD Circular No. 01 & 02 of 2020 regarding Temporary Economic Refinance Facility (TERF) & Islamic Temporary Economic Refinance Facility (ITERF) respectively.

2. In this regard, it is clarified that financing facilities allowed under TERF/ ITERF for plant and machinery would attract weightage of 25% for the purpose of calculation of Single / Group Obligor Exposure Limit under Regulation R-1 of the Prudential Regulations for Corporate/ Commercial Banking.

3. Please acknowledge receipt.



Yours truly,

Sd/-

(Muhammad Akhtar Javed)
Director



       
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