SBP issues new Basel III guidelines for AFS/FVOCI portfolios
MG News | May 19, 2025 at 04:51 PM GMT+05:00
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 | 138,412.25 167.69M | 0.32% 447.43 |
| ALLSHR | 85,702.96 423.92M | 0.15% 131.52 |
| KSE30 | 42,254.84 82.09M | 0.43% 180.24 |
| KMI30 | 194,109.59 84.37M | 0.15% 281.36 |
| KMIALLSHR | 56,713.67 217.03M | 0.03% 16.37 |
| BKTi | 37,831.34 13.04M | 1.62% 603.62 |
| OGTi | 27,440.63 3.93M | -0.09% -23.70 |
| Symbol | Bid/Ask | High/Low |
|---|
| Name | Last | High/Low | Chg/%Chg |
|---|---|---|---|
| BITCOIN FUTURES | 118,765.00 | 119,275.00 117,905.00 | 1145.00 0.97% |
| BRENT CRUDE | 72.41 | 72.82 72.35 | -0.83 -1.13% |
| RICHARDS BAY COAL MONTHLY | 96.50 | 0.00 0.00 | 2.20 2.33% |
| ROTTERDAM COAL MONTHLY | 104.50 | 104.50 104.50 | -0.30 -0.29% |
| USD RBD PALM OLEIN | 998.50 | 998.50 998.50 | 0.00 0.00% |
| CRUDE OIL - WTI | 70.03 | 70.41 70.01 | 0.03 0.04% |
| SUGAR #11 WORLD | 16.46 | 16.58 16.37 | -0.13 -0.78% |
Chart of the Day
Latest News
Top 5 things to watch in this week
Pakistan Stock Movers
| Name | Last | Chg/%Chg |
|---|
| Name | Last | Chg/%Chg |
|---|