The Presidents/ Chief Executives
All Banks/ DFIs

Dear Sir/ Madam,

Capital Adequacy Related Disclosure Requirements under Basel III Implementation

Please refer to the existing forms of Annual Financial Statements circulated vide BSD Circular No. 4 of February 17, 2006.

As you are aware, SBP issued Basel III instructions for implementation in Pakistan vide BPRD Circular No. 6 of 2013 in the light of Basel III reform package introduced by the Basel Committee on Banking Supervision (BCBS). Later on, SBP circulated Basel III related disclosure templates to all banks/ DFIs through emails for implementation from December 31, 2013. However, in the light of discussions with the stakeholders, the revised set of disclosure templates for capital adequacy purposes are enclosed as Annexure-A. These templates will replace the disclosure templates of Note-44 of the above referred circular.

All banks/ DFIs are required to prepare their capital adequacy related disclosure on the attached templates effective from the accounting year ending December 31, 2014. The templates are designed to meet the provisions of rule text “Composition of capital disclosure requirements” released by the BCBS. The use of standard templates is intended to enhance the consistency and comparability of capital related disclosures made by banks across jurisdictions.

Please acknowledge receipt.

• Annexure-A (capital adequacy related disclosures under Basel III)