Might 19, 2025 (MLN): The State Financial institution of Pakistan (SBP) has issued new tips on the remedy of AFS/FVOCI portfolios below the Basel III Capital Framework.
SBP has clarified the remedy of AFS/FVOCI portfolios for Capital Adequacy Ratio (CAR) calculations.
This clarification aligns with earlier communications together with BSD Round No. 8 of 2006, up to date FAQs, and a PBA letter dated July 2, 2024.
Recognizing the numerous impression of this variation, SBP has allowed a transitional association that allows banks and DFIs to progressively reclassify their AFS/FVOCI portfolios from the Banking Ebook to the Buying and selling Ebook over a three-year interval:
| Time Interval | Min FVOCI Portfolio in Buying and selling Ebook |
| 25-Dec | 25% |
| 26-Dec | 50% |
| 27-Dec | 100% |
Banks and DFIs might go for earlier reclassification; nevertheless, they have to not fall under the prescribed minimal thresholds in any given yr.
SBP has warned that any non-compliance will lead to penal motion below related authorized provisions.
All different directions on this topic stay unchanged. SBP has requested all establishments to acknowledge receipt of the round.
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Posted on: 2025-05-19T16:51:11+05:00
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