Please
refer to BSD Circulars No. 20 of October 8, 2008 and No.
11 dated May 22, 2008 on the captioned subject.
2.
In exercise of the powers conferred upon the State Bank
of Pakistan under Section 36 of the State Bank of Pakistan
Act, 1956, and Section 29 of the Banking Companies Ordinance,
1962 it has been decided to reduce the Cash Reserve Requirement
(CRR) and Statutory Liquidity Requirement (SLR) as under:-
A-
Cash Reserve Requirement:
a.
Effective from 18th October, 2008:
i)
Weekly average of 6.0% (subject to daily minimum of
5.0%) of total Demand Liabilities (including Time Deposits
with tenor of less than 1 year)
ii) Time Liabilities (including Time Deposits with tenor
of 1 year and above) will not require any Cash Reserve.
b.
Effective from 15th November, 2008: In line
with earlier Circular No. 20 of October 8, 2008, it
is reiterated that the CRR will be further reduced as
under:
i) Weekly average of 5.0% (subject to daily minimum
of 4.0%) of total Demand Liabilities (including Time
Deposits with tenor of less than 1 year)
ii) Time Liabilities (including Time Deposits with tenor
of 1 year and above) will not require any Cash Reserve.
B-
Statutory Liquidity Requirement:
Effective from 18th October 2008:
i) 9% (excluding CRR) of Total Demand Liabilities (including
Time Deposits with tenors of less than 1 year).
ii) Time Liabilities (including Time Deposits with tenor
of 1 year and above) will not require any SLR
3.
All other instructions on the subject shall, however,
remain unchanged.
Please acknowledge receipt.