Circular No. 30 of 2008
November 25, 2008
Capital Requirements for Banks/DFIs
refer to BSD Circular No. 19 dated September 05, 2008
on the captioned subject.
2. In view of the transition from Basel-I to Basel-II
and to facilitate the banks/DFIs with the requirements
of above referred Circular, it has been decided as under:
Banks/DFIs shall achieve the minimum Capital Adequacy
Ratio (CAR) of 9% on standalone as well as on consolidated
basis, regardless of their CAMELS-S rating, latest by
31st December, 2008.
ii) Banks/DFIs shall achieve the minimum CAR of 10% and
the requirement of variable CAR by 31st December 2009.
The variable CAR requirement, based on the CAMELS-S ratings,
will be advised to each bank/DFI separately in due course
iii) CAR calculations shall be based on Basel II and as
per the guidelines issued by the State Bank of Pakistan
from time to time in this regard.
All other instructions, on the subject, shall remain same.
(Lubna Farooq Malik)