State Bank of Pakistan (SBP) Increases Regulatory Retail Portfolio Limit to Rs. 300 Million

State Bank of Pakistan (SBP) Increases Regulatory Retail Portfolio Limit

In a significant move aimed at enhancing credit access, the State Bank of Pakistan (SBP) has raised the regulatory retail portfolio limit from Rs. 180 million to Rs. 300 million. This change, effective immediately, comes as part of the SBP’s broader efforts to support financial sector stability and growth.

The enhancement is part of the regulatory framework outlined under the Basel Framework. It reflects the SBP’s ongoing efforts to strengthen the banking sector’s capacity to serve businesses, especially in light of previous measures aimed at providing regulatory relief during the COVID-19 pandemic.

The SBP issued a circular on Monday, confirming the increase while noting that all other related instructions, particularly those outlined in the 2020 Minimum Capital Requirements, will remain unchanged.

This adjustment is expected to provide greater flexibility for banks in managing their retail portfolios, enabling them to better support businesses in need of financing.

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