Regulatory Alerts2025-09-24 | BPRD Circular No. 03 of 2025Added · Updated
Basel Capital Adequacy Framework: Revised Instructions for Credit Risk (Standardized Approach)
The State Bank of Pakistan issues revised instructions for calculating risk-weighted assets for credit risk under the Standardized Approach, replacing previous guidelines in BSD Circular No. 8 of 2006. These rules apply to all banks, digital banks, and development finance institutions, mandating the use of recognized External Credit Assessment Institutions and specific mapping processes for credit ratings. Implementation begins with a four-quarter parallel run from September 30, 2025, to June 30, 2026, during which institutions must submit regulatory reports via email with extended deadlines to accommodate the transition.
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