Karachi: The State Bank of Pakistan (SBP) has lowered the Cash Reserve Requirement (CRR) for banks in order to permit increased liquidity concerning housing and construction finance targets, according to a news published on June 15.
Reportedly, SBP has allowed banks to retain lower or additional CRR in the next quarter in relation to surplus or deficit objectives for the quarter ending June 30, 2022, as defined by the procedure. As per the circular issued in this regard on Tuesday (June 14), the SBP has decided that for the banks that meet or do not meet quarterly targets, ‘CRR will not be applicable on surplus or shortfall in targets for housing and construction finance for the quarter ending September 30, 2022, and onwards till further instructions on the matter’. As per the experts, through this move, the banks will be able to enjoy high liquidity.
Moreover, the central bank further stated that banks will maintain CRR (without any lower or extra standards) beginning after October 21, 2022. It is also important to mention here that the SBP has asked banks to allocate a certain percentage of their total loans to the housing sector in order to facilitate home buyers. The targets have been and failing to meet those targets would be subjected to penalties by SBP.
Hazafa reveres the art of writing and has been turned into a property enthusiast by profession. Her daily survival kit includes; tea, coffee, keyboard and paperbacks.
