By Abdul Rafay Siddiqui
KARACHI: Amid the growing concerns of COVID – 19 pandemic, State Bank of Pakistan (SBP) has, thus far, announced a number of regulatory relief measures for the financial sector and real economy. These measures are primarily aimed at ensuring the safety and soundness of banking sector while enhancing their lending capacity to support the economic activities in the country.
The banks/DFIs in Pakistan have much higher capital levels than prescribed globally or minimum levels advised by the State Bank of Pakistan. Accordingly, SBP sees no immediate signs of systemic capital fragility across the banking industry.
However, banks/DFIs have been advised to suspend the dividend distribution for the next two quarters.