Commercial banks: SBP to disclose excess cash reserves

central bank said it would bring more efficiency in money market operations of bank


Express December 10, 2011

KARACHI: The State Bank of Pakistan (SBP) has announced that it will publish weekly data of excess cash reserves held by commercial banks over and above the minimum cash reserve requirement (CRR). Giving the objective of this step, the central bank said it would bring more efficiency in money market operations of banks as excess cash reserves not only adversely impacted the smooth functioning of the interest rate corridor but also had implications for banks’ liquidity management. SBP said the dissemination of data was expected to bring more transparency and efficiency in the money market.

Published in The Express Tribune, December 10th, 2011.

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