Business

SBP changes rules to boost investment

The changes in SBP regulations would enable banks/ DFIs to make higher investments in REITs

Our Correspondent March 23, 2021

It is a misconception that SBP will be empowered unabatedly through the proposed Act to share financial or non-financial private information with any entity, particularly outside the country, said the Ministry of Finance. PHOTO: FILE

KARACHI:

The State Bank of Pakistan (SBP) has announced changes to certain provisions of the existing Prudential Regulations for Corporate and Commercial Banking to encourage enhanced participation and investment of banks/ development finance institutions (DFIs) in the Real Estate Investment Trusts (REITs). The amendments are in line with the government of Pakistan’s initiative of development of housing and construction sector. In a statement issued by the central bank on Monday, it detailed that REITs were asset management companies that owned or financed income-producing real estate across a range of property sectors. The changes in SBP regulations would enable banks/ DFIs to make higher investments in REITs to the tune of 15% of their equity against the existing limit of 10%.

Published in The Express Tribune, March 23^rd, 2021.

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