The central bank yesterday asked the banks and Development Finance Institutions (DFIs) to report the maturity gaps of all their assets and liabilities based on ‘contractual maturities’ in addition to the reporting based on ‘expected maturities’ as notified in its circular issued on February 22 last year.
The regulator said, while reporting gaps based on ‘expected maturities’ the banks and DFIs should disclose the methodology used to determine behavioural maturity of ‘non-contractual maturity’ assets and liabilities.
The move was aimed at further enhancing disclosures on the liquidity risk, said the bank.
In the BSD Circular Letter No. 03 issued in February 2011, the State Bank had advised the banks and DFIs to report maturity gaps between their ‘non-contractual maturity’ assets and liabilities based on ‘expected maturities’.
The SBP, in a circular issued yesterday, said the banks should report both of the above disclosures under Note 45.4.1 of the revised form of Annual Financial Statements issued vide BSD Circular No. 04 dated February 17, 2006.
“The banks shall continue to report their maturity gaps only on ‘expected maturity’ basis in quarterly Data File Structure under Reporting Chart of Accounts as envisaged in the above mentioned Circular letter,” said the regulator. These instructions shall become effective from December 31, 2012, it added.
