The Presidents/Chief Executive Officers

All Islamic Banks / Islamic Banking Branches

Dear Sir/Madam,

STATUTORY LIQUIDITY REQUIREMENT

Please refer to DMMD Circulars No. 1 of February 23, 2011 on the captioned subject.

In exercise of the powers conferred upon the State Bank of Pakistan under section 36 of the State Bank of Pakistan Act, 1956, and section 29 of the Banking companies Ordinance, 1962 it has been decided to increase the Statutory Liquidity Requirement (SLR) for Islamic Banks/ Islamic Banking Branches, as under:

Effective from June 3, 2011:

1. 19% (excluding CRR) of Total Demand Liabilities (including Time deposits with tenors of less than 1 year).
2. Time Liabilities (including Time deposits with tenor of 1 year and above) will not require any SLR.

All other instructions on the subject shall remain unchanged.