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. Hello, I think your website could be having browser compatibility problems.

    Whenever I look at your blog in Safari, it looks fine but when opening in Internet Explorer,
    it has some overlapping issues. I just wanted
    to give you a quick heads up! Aside from that, great website!

  2. Right here is the right site for anyone who wants to understand this topic.
    You realize so much its almost hard to argue with you (not that I personally would
    want to…HaHa). You definitely put a new spin on a subject which
    has been discussed for ages. Great stuff, just wonderful!

  3. My brother suggested I might like this web site.
    He was entirely right. This post actually made my day. You can not imagine
    just how much time I had spent for this information! Thanks!

  4. Heya i’m for the first time here. I came across this board and
    I find It really useful & it helped me out a lot.
    I hope to give something back and aid others like
    you helped me.

  5. I’ve been surfing online more than 4 hours today, yet I never found any interesting article like
    yours. It’s pretty worth enough for me. Personally, if all
    webmasters and bloggers made good content as you did, the internet will be a lot more useful than ever before.

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...