KARACHI: The State Bank of Pakistan (SBP) has decided to increase the Statutory Liquidity Requirement (SLR) for Islamic banks/Islamic banking branches by 5 percent with effect from June 03, 2011.
At present, the SLR for Islamic banks/Islamic banking branches is 14 percent (excluding cash reserve requirement) of Total Demand Liabilities (including Time deposits with tenors of less than 1 year).
A circular (DMMD Circular No 3) issued on Wednesday said that in exercise of the powers conferred upon the State Bank of Pakistan under section 36 of the State Bank of Pakistan Act, 1956, and section 29 of the banking companies ordinance, 1962 it has been decided to increase the SLR for Islamic banks/ Islamic banking branches with effect from June 03, 2011, as under: “19% (excluding CRR) of total demand liabilities (including time deposits with tenors of less than 1 year).” “Time Liabilities (including time deposits with tenor of 1 year and above) will not require any SLR.” “With this decision, the SLR for conventional and Islamic banks will be the same i.e. 19%
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