SBP asks banks to automate Capital Adequacy Returns

Central bank, asked the banks and development finance institutions (DFIs) to submit soft copies of their quarterly and annual Capital Adequacy Returns (CARs). State Bank’s move, which was notified by the regulator through the issuance of BSD circular number 2, is aimed at the automation of CARs. “This refers to BSD Circular No 02 dated 26th March 2007 and BSD Circular No 01 dated 6th January 2009, wherein reporting formats were prescribed for the calculation of the Capital Adequacy Ratio by banks and DFIs,” the circular said. Central bank advised the banks and DFIs to submit soft copies of their quarterly un-audited CARs on consolidated as well as on stand-alone basis, on the enclosed formats within 18 working days of the end of each calendar quarter. The regulator also asked the banks and DFIs to submit soft copies of their annual audited CARs on consolidated and stand-alone basis on the enclosed formats within three months of the end of each calendar year.