Tag: Statutory Liquidity Requirement

  • SBP cuts SLR requirement for exchange companies to 15pc

    SBP cuts SLR requirement for exchange companies to 15pc

    KARACHI: The State Bank of Pakistan (SBP) on Thursday reduced the requirement of Statutory Liquidity Reserve (SLR) for exchange companies from 25 percent to 15 percent in order to channelize home remittances and foreign exchange.

    In a statement the central bank said it had revised SLR requirement of exchange companies from 25 percent to 15 percent of their capital. The enhanced liquidity with exchange companies will enable them to further channelize home remittances and foreign exchange. 

    During the year ended June 2020 Exchange Companies, through their tie up arrangements abroad, have channelized home remittances of $1.44 billion, while this figure stands at $1.67 billion for ten months of current year i.e. 2020/2021.

    This regulatory intervention of State Bank would provide increased liquidity to Exchange Companies to enable them to play their role in increasing the remittances flow and the public will be further facilitated in timely and conveniently receiving home remittances from more than 1,200 outlets of Exchange Companies across Pakistan.   

    At present, out of twenty-seven exchange companies of ‘A’ category, 18 exchange companies are providing home remittances services.

  • SLR limits not to apply on floating rate PIBs: SBP

    SLR limits not to apply on floating rate PIBs: SBP

    KARACHI: The State Bank of Pakistan (SBP) has notified regulations to Statutory Liquidity Requirement (SLR) eligibility limit on floating rate Pakistan Investment Bonds (PIBs).

    In a circular issued on Friday, the SBP said it is decided that SLR eligibility limit of 15 percent for banks and 5 percent for Development Finance Institutions (DFIs) on Pakistan Investment Bonds (PIBs) shall not be applicable on floating rate PIBs.

    The SBP said that it had issued circulars on March 08, 2018 and May 22, 2004 for banks and Development Finance Institutions (DFIs) respectively.

    All other instructions on the subject will remain same. The above instructions will be effective immediately, the SBP said.