SBP notifies Mudarabah financing mechanism for IBIs using GIS (CDC)

MG News | March 05, 2025 at 05:10 PM GMT+05:00
March 05, 2025 (MLN): The State Bank of Pakistan (SBP) has officially notified the mechanism for eligible Islamic Banking Institutions (IBIs) to avail of Mudarabah-based financing facilities using the Government of Pakistan Ijarah Sukuk (GIS) held with the Central Depository Company (CDC) as collateral, according to the circular issued by SBP today.
For availing Shariah Compliant Mudarabah Standing Ceiling Facility and Open Market Operations (OMO –Injections) using GIS(CDC) as collateral, the IBIs shall pledge the collateral in favour of SBP in the Central Depository System (CDS) of CDC, using Group IDs as described in point 2 below.
SBP will create the Group ID on CDS for pledging of GIS (CDC). The syntax for Group IDs will be as below:
Liquidity Facility |
Group ID |
Group ID Description |
---|---|---|
Ceiling Facility |
2025-30 |
SBP MFF Ceiling |
OMO Injection |
2025-29 |
SBP MFF OMO |
The market value of collateral provided by IBI to avail MFF must be at least equivalent to the sum of financing amount availed from SBP, the expected profit on MFF, and the applicable haircut on the market value of the security offered as collateral in line with the collateral requirements notified by SBP from time to time.
The market value of GIS(CDC) used as collateral will be determined using their respective revaluation rates published by FMAP, on the last working day before the day on which the facilities are requested.
Collateral pledged in favour of SBP for availing the said facilities will cease to be unencumbered and will not be counted towards SLR of the IBIs, during the period of facility.
After receipt of deal confirmation from the IBI, and confirmation of the pledge of collateral in CDS in favour of SBP, the funds will be transferred to IBI’s current account at SBP.
On the settlement/maturity date of each financing transaction under MFF, SBP will debit the current account of the IBI maintained with SBP to recover the amount of financing and the profit (as per the expected profit rate), and release the pledged securities in CDS.
The Central Bank has further advised all IBIs availing MFF against eligible collateral to submit the deal confirmation letter as per the revised format, duly signed by the authorized signatories, to Chief Manager, SBP (BSC) Karachi Office.
Copyright Mettis Link News
Related News
Name | Price/Vol | %Chg/NChg |
---|---|---|
KSE100 | 134,299.77 290.06M |
0.39% 517.42 |
ALLSHR | 84,018.16 764.12M |
0.48% 402.35 |
KSE30 | 40,814.29 132.59M |
0.33% 132.52 |
KMI30 | 192,589.16 116.24M |
0.49% 948.28 |
KMIALLSHR | 56,072.25 387.69M |
0.32% 180.74 |
BKTi | 36,971.75 19.46M |
-0.05% -16.94 |
OGTi | 28,240.28 6.19M |
0.21% 58.78 |
Symbol | Bid/Ask | High/Low |
---|
Name | Last | High/Low | Chg/%Chg |
---|---|---|---|
BITCOIN FUTURES | 118,140.00 | 119,450.00 115,635.00 |
4270.00 3.75% |
BRENT CRUDE | 70.63 | 70.71 68.55 |
1.99 2.90% |
RICHARDS BAY COAL MONTHLY | 97.50 | 0.00 0.00 |
1.10 1.14% |
ROTTERDAM COAL MONTHLY | 108.75 | 108.75 108.75 |
0.40 0.37% |
USD RBD PALM OLEIN | 998.50 | 998.50 998.50 |
0.00 0.00% |
CRUDE OIL - WTI | 68.75 | 68.77 66.50 |
2.18 3.27% |
SUGAR #11 WORLD | 16.56 | 16.60 16.20 |
0.30 1.85% |
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 |
---|