The
Chief Executives
All DFIs,
Dear
Sirs,
MINIMUM
CAPITAL REQUIREMENTS
Please
refer to BSD Circular No. 5
dated March 25, 2003 on the above subject, in terms of which
the banks operating in Pakistan are required to meet minimum
paid-up capital requirement of Rs 1 billion free of losses
and to maintain a capital adequacy ratio (CAR) not less
than 8% of their risk weighted assets
In terms of the powers vested upon
the State Bank under Section 13 of the Banking Companies
Ordinance, 1962 it has been decided that effective from
1st July 2004, all Development Financial Institutions (DFIs)
shall also be required to meet minimum paid-up capital requirement
of Rs 1 billion free of losses and maintain capital adequacy
ratio not less than 8% of their risk weighted assets as
envisaged in the above mentioned circular. Furthermore,
they are required to report their capital position on quarterly
basis alongwith Quarterly Statement of Condition on the
prescribed format, w.e.f Quarter ending 30th September,
2004. A copy of the BSD Circular No. 5 dated March 25, 2003
is attached. All DFIs are advised to meet the Minimum Capital
Requirement in accordance with the guidelines laid down
in the said Circular