09 June 2023

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Prudential Regulations 8 Classification & Provisioning

Prudential Regulations PR-8 Classification & Provisions

Listen The Article Your browser does not support the audio element. [vc_empty_space height="20px"] Introduction: [vc_empty_space height="10px"] Prudential regulations play a crucial role in maintaining the stability and soundness of the banking sector. Among these regulations, Prudential Regulation PR-8 stands as a fundamental framework for the classification and provisioning of assets within banks and development financial institutions (DFIs). [vc_empty_space height="10px"] PR-8 provides guidelines and criteria for the proper assessment, classification, and provisioning of loans, investments, and other assets, ensuring accurate risk evaluation and financial reporting. [vc_empty_space height="10px"] Loans/Advances: [vc_empty_space height="10px"] a) Banks/DFIs must follow the prudential guidelines outlined in Annexure-V when classifying their asset portfolio and making provisions based on time criteria. [vc_empty_space...

29 May 2023

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Prudential Regulations Banks – Guarantees

Posted by Ali Murtaza

in All Articles, State Bank Regulations

[vc_empty_space height="20px"] Introduction: [vc_empty_space height="10px"] The prudential regulations R-7 issued by the State Bank of Pakistan (SBP) play a crucial role in governing the issuance of banks and Development Financial Institutions (DFIs) guarantees. [vc_empty_space height="10px"] These regulations provide a framework for ensuring the soundness, security, and proper risk management associated with guarantees, performance bonds, and counter-guarantees. [vc_empty_space height="10px"] By establishing guidelines on collateral, rating requirements, evaluation procedures, and reporting obligations, the SBP aims to safeguard the interests of all stakeholders involved in guarantee transactions. [vc_empty_space height="10px"] The prudential regulations R-7 serve as a cornerstone for promoting transparency, reliability, and confidence in the guarantee mechanisms within the financial sector, ultimately...

25 May 2023

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Prudential Regulations Banks – Part III

Posted by Ali Murtaza

in All Articles, State Bank Regulations

[vc_empty_space height="20px"] Introduction: [vc_empty_space height="10px"] Prudential Regulations play a crucial role in regulating and ensuring the stability of commercial banks in Pakistan. These regulations, set forth by the State Bank of Pakistan, establish guidelines and standards for various aspects of banking operations, including risk management, exposure limits, financial analysis, and security requirements. Adhering to these regulations is vital for banks to maintain a sound and secure financial system. [vc_empty_space height="10px"] In this article, we will explore the key provisions of the Prudential Regulations imposed by the State Bank of Pakistan on commercial banks, highlighting Monitoring of collaterals , joint inspection of pledge stock and exposure...

19 May 2023

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Prudential Regulations Banks – Part II

Posted by Ali Murtaza

in All Articles, State Bank Regulations

Prudential Regulations Commercial Banks – Part II

[vc_empty_space height="20px"] Introduction: [vc_empty_space height="10px"] Prudential Regulations play a crucial role in regulating and ensuring the stability of commercial banks in Pakistan. These regulations, set forth by the State Bank of Pakistan, establish guidelines and standards for various aspects of banking operations, including risk management, exposure limits, financial analysis, and security requirements. Adhering to these regulations is vital for banks to maintain a sound and secure financial system. [vc_empty_space height="10px"] In this article, we will explore the key provisions of the Prudential Regulations imposed by the State Bank of Pakistan on commercial banks, highlighting their significance and impact on the banking industry. Stay tuned to...

11 May 2023

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Prudential Regulations Banks – Part I

Posted by Ali Murtaza

in All Articles, State Bank Regulations

[vc_empty_space height="20px"] Introduction: Prudential Regulations play a crucial role in ensuring the stability and soundness of commercial banks operating in Pakistan. These regulations, issued by the State Bank of Pakistan (SBP), provide a comprehensive framework for risk management, capital adequacy, exposure limits, and other important aspects of banking operations. By implementing these regulations, the SBP aims to safeguard the interests of depositors, maintain financial stability, and promote a healthy banking sector in the country. This article explores the key highlights of the Prudential Regulations for commercial banks as set forth by the State Bank of Pakistan. Regulation – R-1 Exposure Limits [vc_empty_space...

25 April 2023

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Advance Tax – Part II

Posted by Ali Murtaza

in All Articles, Taxation

[vc_empty_space height="20px"] Introduction [vc_empty_space height="10px"] Advance tax is a type of tax that individuals, businesses, and corporations must pay. Certain categories of taxpayers are required to pay advance tax, and non-compliance can result in penalties and legal consequences." [vc_empty_space height="10px"] This is Part II of our article, where we will talk more about advance tax on new motor vehicle registration, transfer of motor vehicles, tax on telephone, internet, and mobile users, as well as tax on retailers and distributors. [vc_empty_space height="10px"] School Supplies [vc_empty_space height="10px"] Advance Tax - Part I [vc_empty_space height="20px"] Advance Tax on Registration of Motor Vehicles – Sec 231B, Division VII Part IV 1st Schedule [vc_empty_space height="10px"] First Registration [vc_empty_space height="10px"] Based...

24 April 2023

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Advance Tax – Part I

Posted by Ali Murtaza

in All Articles, Taxation

[vc_empty_space height="20px"] Introduction [vc_empty_space height="10px"] Advance tax is a form of taxation that requires individuals, businesses, and corporations to pay a portion of their estimated tax liability in advance. [vc_empty_space height="10px"] It is mandatory for certain categories of taxpayers to pay advance tax, and failure to comply with the requirements can result in penalties and legal consequences. [vc_empty_space height="10px"] School Supplies [vc_empty_space height="10px"] In this article, we will explore the concept of quarterly advance tax on individuals, companies / AOPs in Pakistan, advance tax on capital gain, on registered sales tax persons. [vc_empty_space height="20px"] Advance Tax Payment on a quarterly basis – Sec 147 [vc_empty_space height="10px"] Individual [vc_empty_space height="10px"] An individual with an assessed income...