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030804
STATE BANK OF PAKISTAN BANKING SUPERVISION DEPARTMENT
BSD Circular Letter No.9
August 04, 2003
The Presidents/Chief Executives
All Banks/ DFIs
Dear Sirs/Madam,
Quarterly & Half yearly financial statements
In terms of Para 3 of Prudential Regulation
No.XXIX regarding “Responsibilities of Board of Directors” issued vide BSD
Circular No.15 dated 13th June, 2002, all banks/DFIs are, interalia, required to
follow the ‘Code of Corporate Governance’ issued by the SECP so long as any
provision thereof does not come into conflict with any provision of the Banking
Companies Ordinance, 1962, Prudential Regulations and the
instructions/guidelines issued by the State Bank.
We have been receiving queries from Non-listed banks/DFIs, including those who
have peculiar share holding structure, that whether they need to follow clause
XX and XXI of the Code of Corporate Governance of SECP or not. Clause XX
requires listed institutions to publish and circulate un-audited financial
statements along with directors’ review on the affairs of the listed company on
quarterly basis and clause XXI requires that all listed companies shall ensure
that half-yearly financial statements are subjected to a limited scope review by
the statutory auditors.
To enhance financial disclosure and transparency, all the institutions – listed
and non-listed – are advised to follow clauses XX and XXI of the Code of
Corporate Governance of SECP. However, as far as Clause XX is concerned banks/DFIs
may decide not to circulate printed copies of the un-audited financial
statements alongwith directors’ review on the affairs of the company, on
quarterly basis, to all the members except SBP, SECP and stock exchanges. In
that event they will have to ensure publication of the same in the leading
newspaper(s).
Please acknowledge receipt.
Yours faithfully,
(JAMEEL AHMAD)
Director