Banks/DFIs were advised to also disclose the methodology used to determine behavioural maturity of ‘non-contractual maturity’ assets and liabilities. PHOTO: FILE
The State Bank of Pakistan (SBP) asked all banks and development financial institutions (DFIs) to report the maturity gaps of all assets and liabilities based on ‘contractual maturities’, in addition to the reporting based on ‘expected maturities’ to further enhance disclosures on liquidity risk.
According to the BSD circular letter No 2 of 2013 dated January 14, 2013, the banks/DFIs had been advised to also disclose the methodology used to determine behavioural maturity of ‘non-contractual maturity’ assets and liabilities, while reporting gaps based on ‘expected maturities’.
The circular said that banks should report both of the above disclosures under Note 45.4.1 of the revised form of the annual financial statements issued vide BSD circular No 4 dated February 17, 2006. The banks shall continue to report their maturity gaps only on ‘expected maturity’ basis in quarterly data file structure under reporting chart of accounts as envisaged in the aforementioned circular.
Published in The Express Tribune, January 16th, 2013.
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