Rule · SBP · 24 Jan 2025 · BPRD Circular Letter No. 02

Basel III Capital Framework: Treatment of FX Translation Reserves

Foreign Exchange Translation Reserves are treated as part of Common Equity Tier-1 (CET-1) Capital for all banks and development finance institutions. This treatment applies with effect from December 31, 2024. All other instructions on the subject remain unchanged.

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BPRD Circular Letter No. 02

Basel III Capital Framework: Treatment of FX Translation Reserves

January 24, 2025

512

The Presidents / Chief Executives

All Banks/DFIs

Dear Sir/Madam,

Basel III Capital Framework: Treatment of FX Translation Reserves

Please refer to “Instructions for BASEL-III Implementation in Pakistan” issued vide BPRD Circular No. 6 of 2013.

It has been decided to treat Foreign Exchange Translation Reserves as part of Common Equity Tier-1 (CET-1) Capital with effect from December 31, 2024.

All other instructions on the subject shall remain unchanged.

Please acknowledge receipt.

Yours sincerely,

Shahid Rabbani Additional Director

Home — Circulars — BPRD Circular Letter No. 02

Basel III Capital Framework: Treatment of FX Translation Reserves

January 24, 2025

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BPRD Circular No. 6 of 2013Not in RegAlert
“Please refer to “Instructions for BASEL-III Implementation in Pakistan” issued vide BPRD Circular No. 6 of 2013.”