Circulars/Notifications - Banking Surveillance Department  
 BSD Circular No. 07 of 2010
November 26, 2010

The Presidents/Chief Executives
All Microfinance Banks

Dear Sirs/ Madam,

Prudential Regulation No.4: Minimum Capital Requirements (MCR)

Please refer to BSD Circular No. 07 dated March 20, 2008 on the above subject.

2. The State Bank of Pakistan (SBP), in exercise of the powers vested under Section 10 of the Microfinance Institutions Ordinance 2001, has decided to revise the minimum capital requirement for Microfinance Banks (MFBs).

3. Microfinance Banks (MFBs) shall maintain a minimum Paid-up Capital (free of losses) of not less than

i. Three hundred million rupees if licensed to operate in a specified district;
ii. Four hundred million rupees if licensed to operate in a specified region;
iii. Five hundred million rupees if licensed to operate in a specified province; and
iv. One billion rupees if licensed to operate at national level.

4. The MFBs which do not meet this revised MCR are advised to enhance their Paid-up Capital (free of losses) according to the following transitional arrangement


Minimum Paid up capital (free of losses) required as of
December 31, 2011
December 31, 2012
December 31, 2013
MFB licensed to operate at national level
Rs.600 million
Rs. 800 million
Rs. 1 billion
MFB licensed to operate at district level
Rs. 200 million
Rs. 250 million
Rs. 300 million

All other instructions on the subject shall however, remain unchanged.
Please acknowledge receipt.

Yours faithfully,

(Lubna Farooq Malik)

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