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. Everything is very open with a really clear description of
    the challenges. It was really informative. Your site is very useful.
    Thank you for sharing!

  2. Can I simply say what a relief to find somebody who truly understands what they are
    talking about on the web. You definitely know how to bring a problem to light and
    make it important. More and more people ought to look at this and
    understand this side of your story. I can’t believe you are not more
    popular given that you most certainly have the gift.

  3. I do agree with all of the ideas you have offered for your post.

    They’re very convincing and can certainly work. Nonetheless,
    the posts are very brief for newbies. May you please prolong them a bit from next time?
    Thank you for the post.

  4. Howdy! Do you know if they make any plugins to help with Search Engine Optimization? I’m trying to get my blog
    to rank for some targeted keywords but I’m not seeing very good
    results. If you know of any please share. Appreciate it!

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...