![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 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](https://i.tribune.com.pk/media/images/11616007752-0/11616007752-0.jpg)
The State Bank of Pakistan (SBP) has revised the maximum limit of equity of a bank or development finance institution (DFI) for issuing guarantee against the back-to-back/ counter-guarantee by a foreign unrated, or under-rated bank or DFI. Following the revision, the limit has risen to 10%. Through a circular issued by the Banking Policy and Regulations Department (BPRD) on Monday, the central bank has revised Para 2 of Regulation R-7 of Prudential Regulations for corporate/ commercial banking. The SBP amended conditions and limits for banks or DFIs for issuing guarantee against the back-to-back/ counter-guarantee of an unrated or rated below ‘A’ bank/DFI that is situated in a foreign country.
Published in The Express Tribune, May 25th, 2021.
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