Prudential Regulations
PRUDENTIAL REGULATIONS FOR CORPORATE / COMMERCIAL BANKING
(Updated on January 31, 2011)
BANKING POLICY & REGULATIONS DEPARTMENT
STATE BANK OF PAKISTAN
Disclaimer: State Bank of Pakistan compiles a booklet of Prudential Regulations from time to time for convenience of users. Updated version of such a booklet containing amendments in the regulations made through circulars/Circular letters to date is being issued. Due care has been taken while incorporating amendments, however, errors and omission may be expected. In case of any ambiguity, users are advised to refer to the original circulars/circular letters on the relevant subject(s), which are available on SBP’s website (www.sbp.org.pk).
THE TEAM
NAME
DESIGNATION
Inayat Hussain
Executive Director (BPRG)
Syed Irfan Ali
Director (BPRD)
Muhammad Saleem
Additional Director (BPRD)
Kazi Sarfraz
Joint Director (BPRD)
Amjad Ali
Joint Director (BPRD)
Ishrat Hussain
Deputy Director (BPRD)
Rao Ahmed Mukhtar
Deputy Director (BPRD)
Mahvish Naeem
Assistant Director (BPRD)
Nazia Tahir Bodla
Assistant Director (BPRD)
Website Address: www.sbp.org.pk
CONTENTS PART-A PART-B Definitions. Regulations. RISK MANAGEMENT (R) Regulation R-1 Regulation R-2 Regulation R-3 Regulation R-4 Limit on exposure to a single person. Limit on exposure against contingent liabilities. Minimum conditions for taking exposure. Limit on exposure against unsecured financing facilities. Linkage between financial indicators of the borrower and total exposure from financial institutions. Exposure against shares/TFCs and acquisition of shares. Guarantees. Classification and provisioning for assets. Assuming obligations on behalf of NBFCs. Facilities to private limited company. Payment of dividend. Monitoring. Margin requirements. CORPORATE GOVERNANCE (G) Regulation G-1 Corporate governance/board of Directors & management. Dealing with directors, major shareholders & employees of
(Updated on January 31, 2011)
BANKING POLICY & REGULATIONS DEPARTMENT
STATE BANK OF PAKISTAN
Disclaimer: State Bank of Pakistan compiles a booklet of Prudential Regulations from time to time for convenience of users. Updated version of such a booklet containing amendments in the regulations made through circulars/Circular letters to date is being issued. Due care has been taken while incorporating amendments, however, errors and omission may be expected. In case of any ambiguity, users are advised to refer to the original circulars/circular letters on the relevant subject(s), which are available on SBP’s website (www.sbp.org.pk).
THE TEAM
NAME
DESIGNATION
Inayat Hussain
Executive Director (BPRG)
Syed Irfan Ali
Director (BPRD)
Muhammad Saleem
Additional Director (BPRD)
Kazi Sarfraz
Joint Director (BPRD)
Amjad Ali
Joint Director (BPRD)
Ishrat Hussain
Deputy Director (BPRD)
Rao Ahmed Mukhtar
Deputy Director (BPRD)
Mahvish Naeem
Assistant Director (BPRD)
Nazia Tahir Bodla
Assistant Director (BPRD)
Website Address: www.sbp.org.pk
CONTENTS PART-A PART-B Definitions. Regulations. RISK MANAGEMENT (R) Regulation R-1 Regulation R-2 Regulation R-3 Regulation R-4 Limit on exposure to a single person. Limit on exposure against contingent liabilities. Minimum conditions for taking exposure. Limit on exposure against unsecured financing facilities. Linkage between financial indicators of the borrower and total exposure from financial institutions. Exposure against shares/TFCs and acquisition of shares. Guarantees. Classification and provisioning for assets. Assuming obligations on behalf of NBFCs. Facilities to private limited company. Payment of dividend. Monitoring. Margin requirements. CORPORATE GOVERNANCE (G) Regulation G-1 Corporate governance/board of Directors & management. Dealing with directors, major shareholders & employees of