EnglishFrenchPortugueseRussianUrdu

MASTER CIRCULAR-MAINTENANCE OF STATUTORY LIQUIDITY REQUIREMENT (SLR)

State of Bank Pakistan

 

28th May, 2004

BSD  Circular No .08 of 2004

The Presidents/ Chief Executives

All Banks

 

Dear Sirs/Madam,

 

MASTER CIRCULAR-MAINTENANCE OF STATUTORY LIQUIDITY REQUIREMENT (SLR)

 

 

In terms of Section 29 of the Banking Companies Ordinance, 1962, banks are required to maintain Statutory Liquidity Requirement in cash, gold or unencumbered approved securities valued at a price not exceeding “the lower of the cost or the current market price” equivalent to an amount which shall not at the close of business on any day be less than “such percentage” of the total of their time and demand liabilities in Pakistan, as may be notified by the State Bank from time to time. Presently, banks are required to maintain the liquid assets @ 15% (excluding Statutory Cash Reserve maintained under section 36(1) of the State Bank of Pakistan Act, 1956) of their total time and demand liabilities in Pakistan with effect from 12th July, 1999.

 

2) In order to facilitate the banks, instructions issued from time to time on the subject have been consolidated and are given hereunder: –

i) The Total Time and Demand Liabilities (TDL) for the purpose of determining Statutory Liquidity Requirement (SLR) and Cash Reserve Requirement (CRR) shall include the following heads of accounts of Weekly Statement of Position (WSP):

a) Demand Deposits (General) (c) Time Deposits (General)

b) Other Demand Liabilities d) Other Time Liabilities

The detail of items included in the above heads of accounts (for reference) is given in the enclosed Annexure-A.

ii) In terms of Section 36 of State Bank of Pakistan Act, 1956 and Section 29 of the Banking Companies Ordinance, 1962, “Liabilities” shall not include the paid up capital or the reserves or any credit balance in the profit and loss account of the Banking Company or the amount of any loan taken from the State Bank or any such liabilities as may be notified by the State Bank for the purpose. Accordingly, the following liabilities of WSP shall not be taken into account while computing the TDL:

 

Print Friendly, PDF & Email

Related Case Law