Liquidity Management
Saturday, August 1, 2009
In order to ensure prudent liquidity management by banks, it has been decided that henceforth Advances to Deposits Ratio (ADR) of any bank shall not exceed 70% at any time. For this purpose, the terms “Advances” and “Deposits” are defined as follows:
Advances:
All Loans / Advances (on gross basis) less refinance availed from SBP under Export Refinance and Long Term Financing Facility (LTFF) Schemes and lending to other banks.
Deposits:
All types of deposits including Demand, Savings, and Time Deposits less deposits / placements from other banks.
Advances:
All Loans / Advances (on gross basis) less refinance availed from SBP under Export Refinance and Long Term Financing Facility (LTFF) Schemes and lending to other banks.
Deposits:
All types of deposits including Demand, Savings, and Time Deposits less deposits / placements from other banks.
posted @ 10:58 AM,
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