OMOs/reverse repo facility: No ‘held to maturity’ securities for borrowing: SBP

RECORDER REPORT

KARACHI: The State Bank of Pakistan has decided to prohibit all banks from using the securities classified under ‘held to maturity’ category for borrowing from SBP in Open Market Operations/reverse repo facility with effect from 19th October, 2012.

Given the liquidity position of the market, it has been decided that securities classified under ‘Held to Maturity’ category cannot be used for borrowing from SBP in OMOs/reverse repo facility with effect from 19th October, 2012, according to DMMD Circular No. 18 issued to the Presidents/Chief Executive Officers of all scheduled banks/DFIs/PDs on Friday.

Banks were earlier allowed to use the securities classified under ‘Held to Maturity’ category for borrowing under SBP repo facility (OMO)/discount window.