KARACHI: State Bank of Pakistan (SBP) has advised banks and development finance institutions (DFIs) to ensure timely submission of the stress testing returns to avoid legal action.
The Central Bank shall take a punitive action against the respondent banks/ DFIs under the relevant provisions of the Banking Companies Ordinance-1962 in case of non-compliance of the above directives, said a SBP circular regarding Guidelines on Stress Testing addressed to the Heads of all banks/ DFIs here on Tuesday.
For facilitating banks/ DFIs in submission of quarterly stress testing return, it has been decided to modify the submission deadline from within 30 calendar days of close of each quarter to 22 working days of the close of each quarter.
The above schedule shall be applicable in respect of returns for the quarter ending September 30, 2013 and until further instructions.
Banks and DFIs shall continue to submit stress-testing returns as per Annex-C of the Stress Testing Guidelines issued vide above mentioned circular.
Banks and DFIs have been advised to refer to BSD Circular No. 01 of May 11, 2012 on the above subject.
All other instructions on the subject shall, however, remain unchanged, SBP communique said.