{"id":3076,"date":"2025-01-24T20:35:13","date_gmt":"2025-01-24T15:35:13","guid":{"rendered":"https:\/\/pkfin.kotenterprises.dev\/?p=3076"},"modified":"2025-01-24T20:35:13","modified_gmt":"2025-01-24T15:35:13","slug":"sbp-revises-financial-reporting-guidelines-for-banks-dfis-and-mfbs","status":"publish","type":"post","link":"https:\/\/pkfin.kotenterprises.dev\/?p=3076","title":{"rendered":"SBP revises Financial Reporting guidelines for Banks, DFIs and MFBs"},"content":{"rendered":"

Karachi, January 22, 2025:<\/strong> The State Bank of Pakistan (SBP)<\/a> has issued revised instructions to facilitate the implementation of the International Financial Reporting Standard 9 (IFRS 9) across financial institutions, including banks, Development Finance Institutions (DFIs), and Microfinance Banks (MFBs). The updated directives, announced in a circular dated January 22, 2025, include key amendments to address industry-specific requirements and enhance compliance processes.<\/p>\n

One of the major changes involves the retrospective application of modification accounting for loans modified on or after January 1, 2020. Additionally, financial institutions are allowed to maintain general reserves and provisions exceeding the Expected Credit Loss (ECL) for Stage 1 and Stage 2 loans until December 31, 2026, providing flexibility in reserve management.<\/p>\n

For Islamic Banking Institutions<\/a> (IBIs), the SBP has allowed adherence to Islamic Financial Accounting Standards (IFAS) 1 and 2 for applicable products while continuing with existing methodologies for other Islamic offerings. However, IBIs must disclose the potential financial impact of fully adopting IFRS 9 in their financial statements. Furthermore, the SBP reiterated that charity funds generated through Islamic products should not be recognized as income, in line with its prior instructions.<\/p>\n

The SBP clarified that all other guidelines issued<\/a> under IFRS 9 remain unchanged. The updated measures are aimed at streamlining compliance processes while accommodating the operational needs of various financial institutions operating in Pakistan.<\/p>\n

These revisions are expected to ease the transition to IFRS 9 for financial institutions while ensuring alignment with both conventional and Islamic banking frameworks.<\/p>\n","protected":false},"excerpt":{"rendered":"

Karachi, January 22, 2025: The State Bank of Pakistan (SBP) has issued revised instructions to facilitate the implementation of the International Financial Reporting Standard 9 (IFRS 9) across financial institutions, including banks, Development Finance Institutions (DFIs), and Microfinance Banks (MFBs). The updated directives, announced in a circular dated January 22, 2025, include key amendments to […]<\/p>\n","protected":false},"author":1,"featured_media":3064,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_uf_show_specific_survey":0,"_uf_disable_surveys":false,"_FSMCFIC_featured_image_caption":"","_FSMCFIC_featured_image_nocaption":"","_FSMCFIC_featured_image_hide":"","footnotes":""},"categories":[8],"tags":[],"class_list":["post","format-standard"],"aioseo_notices":[],"aioseo_head":"\n\t\t\n\t\n\t\n\t\n\t\n\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t