The Presidents/ Chief Executive Officers

All Banks/DFIs.

Dear Sirs/Madam,

Revised Prudential Regulations for Corporate / Commercial Banking

1. In order to align the regulatory framework to changing business environment and the best international practices, the State Bank of Pakistan, in consultation with stakeholders, has revised the Prudential Regulations on Risk Management and Operations for Corporate & Commercial Banking. The revised regulations aim to assist banks/DFIs in better addressing their unique risk factors and dynamic environment by giving more discretion in business decisions. These regulations also describe minimum prudential benchmarks in critical risk areas to balance the considerations of financial stability of banks/DFIs vis-à-vis diversity and innovation.
2. These Prudential Regulations do not supersede directives and instructions issued by the State Bank in respect of areas not covered under these regulations. Banks/DFIs that are compliant to the revised or new limits as introduced in these regulations shall follow the same instantly. However, such institutions which are in breach of these limits will have to achieve the compliance by 30-06-2015, unless otherwise specifically mentioned in the regulations
3. Banks/DFIs are advised to ensure meticulous compliance of these Regulations in letter and spirit. Any non-compliance or circumvention of the requirements will attract punitive action under the provisions of the Banking Companies Ordinance, 1962.

Please acknowledge receipt.