SBP changes rules to boost investment
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
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 23rd, 2021.
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