refer to the BSD Circular No. 08 dated June 27, 2006 regarding
implementation of Basel II in Pakistan.
It has been decided that the book value of other intangible
assets including software, brand value etc. in addition
to goodwill, will also be deducted from Tier-1 capital
when arriving at the eligible regulatory capital for the
purpose of calculating Minimum Capital Requirements.
Accordingly, section 1.3.5 “Capital Deductions”
of the detailed instructions stands amended as in Annexure-A.
Moreover, for reporting purposes, the head 1.8 “Book
value of Goodwill” in the CAP-1 sheet of the MCR
reporting format for Basel II Standardized Approach as
issued vide BSD Circular No. 2 dated March 26, 2007 is
replaced with “Book value of Goodwill and Intangibles”
All other instructions on the subject shall, however,
remain the same.