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. What’s Going down i’m new to this, I stumbled upon this I’ve discovered It absolutely useful and it has aided me out loads.
    I’m hoping to give a contribution & help different customers like its aided me.
    Great job.

  2. If you want to increase your knowledge only keep visiting this web page and be updated with the
    hottest gossip posted here.

  3. Its such as you read my thoughts! You seem to know so much
    approximately this, like you wrote the e book in it or something.

    I think that you can do with a few percent to force the message house a bit, however other than that, that is fantastic blog.
    A great read. I’ll definitely be back.

  4. We stumbled over here coming from a different website
    and thought I might as well check things out.
    I like what I see so now i am following you. Look forward to looking at
    your web page yet again.

  5. Heya this is kind of of off topic but I was wondering if blogs use WYSIWYG editors or if you have to manually code with HTML.

    I’m starting a blog soon but have no coding know-how so I wanted
    to get guidance from someone with experience.

    Any help would be greatly appreciated!

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...