Pakistan Banks: SBP issued guidelines for Pool Management for IBIs and amended the implementation of IFRS 9 – Neutral for Banks - By Topline Research

<p></p><ul><li><span style="font-family:Arial, Helvetica, sans-serif;font-size:medium;">State Bank of Pakistan (SBP) recently issued guidelines through its circulars/notifications regarding Profit and Loss Distribution and Pool Management for Islamic Banking Institutions (IBIs) and amended the IFRS 9 Application Instructions.</span></li></ul><ul><li><span style="font-family:Arial, Helvetica, sans-serif;font-size:medium;">SBP has clarified that the provisions created against non-performing assets as per relevant SBP regulations will be charged to the respective pool.</span></li></ul><ul><li><span style="font-family:Arial, Helvetica, sans-serif;font-size:medium;">Moreover, in para 2 of IFPD Circular No. 9 dated November 26, 2024, the phrase &ldquo;(excluding fixed assets)&rdquo; stands deleted.</span></li></ul>