Preview

Prudential Regulations

Powerful Essays
Open Document
Open Document
25889 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
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

You May Also Find These Documents Helpful

  • Powerful Essays

    This is to certify that the dissertation submitted in partial fulfillment for the award of eMBA Finance (Banking & Insurance), of MET’s Institute of Management is a result of the bonafide research work carried out by Mr. Nilesh Jain under my supervision and guidance…

    • 10478 Words
    • 47 Pages
    Powerful Essays
  • Good Essays

    Working Capital Case Study

    • 2118 Words
    • 9 Pages

    17. This case is an adapted version of the original case written by the author and published in Pandey, LM. and Bhat, Ramesh, Cases in Financial Management, Tata McGraw Hill, 2002.…

    • 2118 Words
    • 9 Pages
    Good Essays
  • Good Essays

    Regulatory Requirements

    • 983 Words
    • 4 Pages

    As a society we have many laws, and individuals departments that enforce those laws. There are criminal, civil, contract, family, constitutional, common, and labor laws, criminal law handles crime and civil law handles most of the other laws mention above. With labor laws handle by the U.S Department of Labor also known as DOL administers and enforces over 180 federal laws that are for just the workplace, and those laws are in place for the protection of employers and their employees (DOL, n.d.)…

    • 983 Words
    • 4 Pages
    Good Essays
  • Powerful Essays

    Target Corporation

    • 8984 Words
    • 36 Pages

    Bibliography: Firer, C. Ross, SA. Westerfield, RW. Jordan, BD. Fundamentals of Corporate Finance. 4th South African Edition.2009.McGraw-Hill Education(UK)…

    • 8984 Words
    • 36 Pages
    Powerful Essays
  • Powerful Essays

    Goodweek Tires Case Study

    • 2387 Words
    • 10 Pages

    Major AHM Yeaseen Chowdhury, course instructor, Corporate Finance (F-601), BUP, authorized this report verbally as part of the course curriculum. This is a group assignment which was assigned after a series of class lectures by the course instructor.…

    • 2387 Words
    • 10 Pages
    Powerful Essays
  • Powerful Essays

    Strategy Assignment

    • 3420 Words
    • 13 Pages

    team has 23 years of experience inside the company. HH Sheikh Ahmed bin Saeed Al…

    • 3420 Words
    • 13 Pages
    Powerful Essays
  • Best Essays

    Whistle Blowing

    • 3850 Words
    • 16 Pages

    This assignment was done in partial fulfillment of the requirements of the Finance Major course (BBA 4)…

    • 3850 Words
    • 16 Pages
    Best Essays
  • Powerful Essays

    Toyota Supply Chain

    • 78763 Words
    • 316 Pages

    Copyright © 2009 by Ananth V. Iyer, Sridhar Seshadri, and Roy Vasher. All rights reserved. Except as permitted under the United States Copyright Act of 1976, no part of this publication may be reproduced or distributed in any form or by any means, or stored in a database or retrieval system, without the prior written permission of the publisher. ISBN: 978-0-07-162340-7 MHID: 0-07-162340-X The material in this eBook also appears in the print version of this title: ISBN: 978-0-07-161549-5, MHID: 0-07-161549-0. All trademarks are trademarks of their respective owners. Rather than put a trademark symbol after every occurrence of a trademarked name, we use names in an editorial fashion only, and to the benefit of the trademark owner, with no intention of infringement of the trademark. Where such designations appear in this book, they have been printed with initial caps. McGraw-Hill eBooks are available at special quantity discounts to use as premiums and sales promotions, or for use in corporate training programs. To contact a representative please e-mail us at bulksales@mcgraw-hill.com. This publication is designed to provide accurate and authoritative information in regard to the subject matter covered. It is sold with the understanding that neither the author nor the publisher is engaged in rendering legal, accounting, futures securities trading, or other professional service. If legal advice or other expert assistance is required, the services of a competent professional person should besought. —From a Declaration of Principles jointly adopted by a Committeeof the American Bar Association and a Committee of Publishers TERMS OF USE This is a copyrighted work and The McGraw-Hill Companies, Inc.…

    • 78763 Words
    • 316 Pages
    Powerful Essays
  • Powerful Essays

    Cfa Notes

    • 6478 Words
    • 26 Pages

    Study Session 11 – Assigned Reading #42 – The Corporate Governance of Listed Companies: A Manual for Investors…

    • 6478 Words
    • 26 Pages
    Powerful Essays
  • Better Essays

    Financial Service Act

    • 75025 Words
    • 301 Pages

    Authorized business 8. Authorized business to be carried on by authorized person 9. Application for authorization 10. Grant of licence by Minister 11. Approval by Bank 12. Requirements on minimum capital funds or surplus of assets over liabilities 13. Additional conditions of licence or approval Division 2 Restriction on dealings of authorized persons 14. Authorized person to carry on authorized business only 15. Authorized person and operator of designated payment system permitted to carry on certain Islamic financial business 16. Licensed insurer to carry on life or general business Division 3 Registered business 17. Registered business to be carried on by registered person 18. Registered person to comply with standards Division 4 Representative office 19. Requirements for representative office Division 5 Revocation, deregistration, surrender or cessation of business or operations 20. Grounds for revocation of authorization 21. Grounds for deregistration 22. Surrender of licence or notification on…

    • 75025 Words
    • 301 Pages
    Better Essays
  • Better Essays

    forms of finance

    • 1509 Words
    • 7 Pages

    Companies need to choose from among various sources of finance depending on the amount of capital required and the term for which it is needed. Finance sources can be divided into three categories, namely traditional sources, ownership capital and non-ownership capital. Traditional sources are the internally generated capital (retained earnings); ownership capital is the capital owned by shareholders of the company (ordinary shares) while non-ownership capital includes funds from lenders such as banks and creditors. In view of this report, it is exclusively focused on external financing which is ownership and non-ownership capital.…

    • 1509 Words
    • 7 Pages
    Better Essays
  • Good Essays

    safeguarding regulations

    • 2687 Words
    • 7 Pages

    Health and social care settings are now much more aware of what is seen as abuse and how to recognise when abuse has occurred. Due to this there has been safeguarding regulations put in place for vulnerable groups of people. Safeguarding is protecting people from any harm. Each care setting has procedures that should enable them to identify and risks to vulnerable people more clearly.…

    • 2687 Words
    • 7 Pages
    Good Essays
  • Best Essays

    Merger-Bat & Rothmans

    • 2124 Words
    • 9 Pages

    The submission is also a part of requirement for completion of FIN 745 - Managerial Finance subject.…

    • 2124 Words
    • 9 Pages
    Best Essays
  • Powerful Essays

    Honda Annual Report

    • 40349 Words
    • 162 Pages

    Preparing for the Future Risk Factors Corporate Governance Board of Directors, Corporate Auditors and Operating Officers Financial Section Corporate Information…

    • 40349 Words
    • 162 Pages
    Powerful Essays
  • Good Essays

    Governance is defined as policies or methods installed to administrate how businesses operate and Regulation is defined as a structured type of regulation managed in finance companies (Clarke 2010). There are certain problems existing…

    • 1132 Words
    • 5 Pages
    Good Essays