SBP issues new Basel III guidelines for AFS/FVOCI portfolios

MG News | May 19, 2025 at 04:51 PM GMT+05:00

Add Mettisglobal as a Trusted Source on Google

0:00

May 19, 2025 (MLN): The State Bank of Pakistan (SBP) has issued new guidelines on the treatment of AFS/FVOCI portfolios under the Basel III Capital Framework.

SBP has clarified the treatment of AFS/FVOCI portfolios for Capital Adequacy Ratio (CAR) calculations.

This clarification aligns with earlier communications including BSD Circular No. 8 of 2006, updated FAQs, and a PBA letter dated July 2, 2024.

Recognizing the significant impact of this change, SBP has allowed a transitional arrangement that enables banks and DFIs to gradually reclassify their AFS/FVOCI portfolios from the Banking Book to the Trading Book over a three-year period:

Time Period	Min FVOCI Portfolio in Trading Book
25-Dec	25%
26-Dec	50%
27-Dec	100%

Banks and DFIs may opt for earlier reclassification; however, they must not fall below the prescribed minimum thresholds in any given year.

SBP has warned that any non-compliance will result in penal action under relevant legal provisions.

All other instructions on this subject remain unchanged. SBP has asked all institutions to acknowledge receipt of the circular.

Copyright Mettis Link News

Related News

Name	Price/Vol	%Chg/NChg
KSE100	171,328.58 99.75M	0.26% 443.99
ALLSHR	103,565.38 520.63M	0.26% 268.15
KSE30	50,956.27 44.93M	0.14% 73.27
KMI30	244,080.69 50.05M	0.39% 941.44
KMIALLSHR	67,137.71 261.25M	0.24% 158.49
BKTi	47,669.84 12.17M	0.06% 27.73
OGTi	34,936.41 3.55M	-0.57% -200.08

Symbol	Bid/Ask	High/Low

Name	Last	High/Low	Chg/%Chg
BITCOIN FUTURES	84,080.00	84,335.00 80,410.00	2750.00 3.38%
BRENT CRUDE	102.01	104.90 101.19	-1.86 -1.79%
RICHARDS BAY COAL MONTHLY	130.00	0.00 0.00	6.10 4.92%
ROTTERDAM COAL MONTHLY	138.50	0.00 0.00	1.45 1.06%
USD RBD PALM OLEIN	1,228.00	1,228.00 1,228.00	0.00 0.00%
CRUDE OIL - WTI	94.37	97.22 93.46	-1.71 -1.78%
SUGAR #11 WORLD	18.27	18.39 18.15	0.03 0.16%