Gold Included in Liquid Assets Definition
Thursday, July 22, 2010
The State Bank of Pakistan (SBP) included gold valuables under the definition of liquid assets for consumer and Small and Medium Enterprises (SME) financing. The central bank amended prudential regulations for consumer and SME financing and inserted gold ornaments and gold bullion in the definition of liquid assets.
The revised definition of liquid assets under the prudential regulations is:
“Liquid Assets are the assets, which are readily convertible into cash without recourse to a court of law and mean encashment/realisable value of government securities, bank deposits, gold ornaments, gold bullion, certificates of deposit, shares of listed companies, which are actively traded on the stock exchange, NIT units, certificates of mutual funds, certificates of investment (CoIs) issued by DFIs/NBFCs rated at least ‘A’ by a credit rating agency on the approved panel of the SBP, listed TFCs rated at least ‘A’ by a credit rating agency on the approved panel of the SBP and certificates of asset management companies for which there is a book maker quoting daily offer and bid rates and there is active secondary market trading. These assets with appropriate margins should be in possession of the banks/DFIs with perfected lien.”
The central bank said that all other instructions on the subject would remain unchanged.
Labels: Gold, Liquid Assets, SBP
posted @ 1:00 PM,
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