KARACHI: The State Bank of Pakistan (SBP) on Tuesday said the banks had been facilitated with more liquidity related to the targets for housing and construction finance.

       “To facilitate the banks, SBP has decided that the lower/additional Cash Reserve Requirement (CRR) for banks that meet or do not meet quarterly targets will not be applicable on surplus or shortfall in targets of housing and construction finance for the quarter ending September 30, 2022 and onwards till further instructions on the matter,” said a circular issued by the SBP. With this move, the banks will be able to enjoy high liquidity.

       Accordingly, banks will maintain lower or additional CRR in respect of surplus or shortfall in targets for the quarter ending June 30, 2022 in the next quarter as per defined procedure, said the SBP.

       The central bank added that banks will maintain CRR (without lower or additional requirements) from the first reserve maintenance period starting after October 21, 2022.

       Published in Dawn,June 15th, 2022