Circulars/Notifications - Banking Supervision Department  
 BSD Circular No. 5
January 31, 2001 

All Housing Finance Companies/Discount Houses
notified under Section 3A of  the 
Banking Companies Ordinance,1962.

Dear Sirs,



Your attention is invited to Section 3A of the Banking Companies Ordinance, 1962 as amended through the Banking Companies (Amendment) Ordinance, 2000 (copy enclosed). The amended law empowers the State Bank to determine minimum capital requirements for banks/NBFIs including Housing Finance Companies/Discount Houses.

2.         In exercise of powers vested under the provisions of above law it has been decided to prescribe Minimum Paid-up Capital Requirements for Housing Finance Companies/Discount Houses. Accordingly, all Housing Finance Companies/Discount Houses notified under Section 3A of  the Banking Companies Ordinance, 1962 are directed as follows.

a)      Effective immediately no Housing Finance Company/Discount House shall commence or carry on business unless it has a minimum paid up capital of Rs.300 million.

b)      If a Housing Finance Company/Discount House is found short of the above mentioned minimum paid up capital requirement on the date of issuance of this circular, it shall meet 50% of the shortfall latest by 1st January, 2002 and the remaining 50% by 1st January, 2003.

 3.         Housing Finance Companies/Discount Houses not meeting the minimum paid up capital requirement as set hereinabove shall be eligible to undertake only such kinds of business and transactions which will be specified by the SBP for a particular institution.

4.         Please acknowledge receipt.

Yours faithfully,
(Kazi Abdul Maktadir)
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