Is Revaluation Surplus part of Equity?
Saturday, March 14, 2009
Revaluation reserves will remain part of the equity for first three years only, from the date of asset revaluation, during which time the borrower will strengthen its equity base to enable it to avail facilities without the benefit of revaluation reserves.However, if a borrower gets revaluation during the three years period, the borrower will be allowed the benefit from fresh revaluation, to the extent of increase in revaluation reserves, but restricting the benefit of such incremental value to 3 years only.
Similarly, if after 3 years, the borrower again gets revaluation of the assets with resultant addition in their value, the benefit of such revaluation may also be allowed for the next 3 years, again to the extent of increase in revaluation reserves.
Ref: Prudential Regulation issued by SBP
Labels: Prudential Regulations, Revaluation Surplus, SBP
posted @ 2:20 PM,
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Prudential Regulations by State Bank of Pakistan
Wednesday, November 26, 2008
State Bank has issued some guidelines required to be followed by commerical bank for its operation. These include;
- Prudential Regulations for Agriculture Financing
- Prudential Regulations for Corporate / Commercial Banking (as of 31st January, 2009)
- Prudential Regulations for SMEs Financing (as of 31st January, 2009)
- Prudential Regulations for Consumer Financing (as of 31st January, 2009)
- Prudential regulations for Micro Finance Banks
Labels: Prudential Regulations, SBP
posted @ 12:33 PM,
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