The State Bank of Pakistan (SBP) has withdrawn limit of 10 percent exposure of banks/DFIs under housing finance to develop housing portfolio and facilitate these institutions exploit potential of this sector.
In a circular on Saturday the SBP has invited attention of banks/DFIs to regulation R-17 of the Prudential Regulations for Consumer Financing which stipulates that total exposure of b0anks/DFIs under housing finance will not exceed 10 percent of their net advances.
To enable the banks to develop housing portfolio to a reasonable level and thus fully exploit potential of this sector, it has been decided to do away with the limit of 10 percent with immediate effect.