Regulatory Alerts2025-01-24 | BPRD Circular Letter No. 02Added · Updated
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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