Regulatory Alerts2025-09-24 | BPRD Circular No. 03Basel Capital Adequacy Framework: Revised Instructions for Credit Risk
The State Bank of Pakistan has issued revised instructions for the Standardized Approach to credit risk under the Basel III framework, applicable to all banks and development finance institutions. These reforms will be implemented on a parallel run basis from September 30, 2025, to June 30, 2026, to allow for industry feedback and monitoring of implementation challenges. The document outlines updated risk-weighting regimes for on-balance and off-balance sheet exposures, alongside specified credit risk mitigation techniques.
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