KARACHI: The State Bank of Pakistan (SBP) on Wednesday revised its capital adequacy regulations to enhance the investment in real estate sector.
As per the circular released by SBP, the central bank has reduced the risk weight of banks and DFIs by half from 200pc to 100pc on investment in Real Estate Investment Trusts (REITs).
The revised regulations have enabled the banks to enhance their investment in REITs without allocating large amount of capitals.
The circular of the central bank further notified that the central bank will revisit the amended regulations after five years.
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