Question:

Does the per party limit under R-1 apply by SBP on interbank placement with banks and DFIs?

by Guest7641  |  12 years, 11 month(s) ago

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I need to know that does the per party limit under R-1 apply by State bank of Pakistan on interbank placement with banks and DFIs? As I have to write an essay on his topic.

 Tags: apply, banks, dfis, interbank, limit, party, placement, R1, SBP

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  1. Guest9396
    Yes, the interbank by State bank of Pakistan placement is also subject to per party limits under Regulation R-1. However, the calculation of per party limit in such cases will be subject to the following weight ages, as explained in Para F of annexure-1:
    (i) 10% weight age on exposure to banks / DFIs with ‘AAA’ rating.
    (ii) 25% weight age on exposure to banks / DFIs rated ‘A' and above.
    (iii) 50% weight age on exposure to banks / DFIs rated ‘BBB’ and above.

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