SBP’s regulatory-support for ‘Real Estate Investment Trusts’

Date:

Karachi, June 02, 2021: The State Bank of Pakistan (SBP) on Wednesday announced favorable changes in the ‘Basel Capital Adequacy’ framework for the Real Estate Investment Trusts (REITs).

These changes will allow banks to book greater exposure in REITs, facilitate the development of Housing Finance as well as Capital Market in the country.

REIT Management companies in Pakistan had submitted their recommendation to the State Bank earlier this year. Now, banks’ investment in REITs will require them to set aside less capital against risk emanating from this investment activity, which is being described as a positive development by the senior bankers.

Moreover, their investment in REITs shall now be categorized in the “Banking Book” instead of “Trading Book”.

REITs are a quintessential instrument for the government to achieve documentation, transparency and promote real estate development in the country. Effective participation by banking companies will support this structure and provide confidence to the market.

The REIT Management Companies are thankful to the SBP and consider this as an important milestone towards the development of REIT industry in Pakistan.

932 COMMENTS

  1. Hey there! I know this is kind of off topic but I was wondering which blog platform are you using for this site?
    I’m getting fed up of WordPress because I’ve had problems with hackers and I’m looking at options for another platform.
    I would be great if you could point me in the direction of
    a good platform.

  2. Its like you read my mind! You appear to know a lot about
    this, like you wrote the book in it or something.
    I think that you could do with some pics to drive the message home
    a little bit, but other than that, this is wonderful blog.
    A fantastic read. I’ll definitely be back.

  3. Have you ever thought about including a little bit more than just your articles?
    I mean, what you say is important and everything. But think of if you added
    some great graphics or video clips to give your posts
    more, “pop”! Your content is excellent but with images and video clips,
    this website could certainly be one of the greatest in its niche.
    Great blog!

  4. Howdy! I know this is kind of off-topic but I had to ask.

    Does managing a well-established blog like yours require a large amount
    of work? I’m brand new to writing a blog but I do write in my diary every day.

    I’d like to start a blog so I will be able to share my personal experience and thoughts online.
    Please let me know if you have any recommendations or tips for new aspiring
    blog owners. Thankyou!

  5. Thanks for sharing superb informations. Your web site is so cool.

    I am impressed by the details that you have
    on this web site. It reveals how nicely you understand this subject.
    Bookmarked this website page, will come back for extra articles.
    You, my friend, ROCK! I found simply the information I already searched everywhere and just could not come across.
    What an ideal web-site.

Comments are closed.

Share post:

Subscribe

Popular

More like this
Related

Afghan Repatriation & Transit Trade Standoff

The repatriation of Afghans faces a major hurdle, not...

SPAR6C: Powering Pakistan & the World for Climate Action, Green Growth

The program selects four countries -- Colombia, Pakistan, Thailand, and Zambia -- each at different stages of institutional capacity, climate change mitigation strategy development, and NDC progress tracking.

Reconciliation & Replacement Commission

The current political, economic and security situation is alarming....

Balochistan Minerals: From Dust to Glory  

Balochistan has a variety of sizable and valuable mineral...