Islamabad, Jan 25: State Bank of Pakistan Updates Financial Reporting Rules for Banks and Financial Institutions. The State Bank of Pakistan (SBP) has announced updates to the rules for financial reporting by banks and financial institutions, particularly in relation to submissions through its Data Acquisition Portal (DAP4). These changes are designed to align reporting practices with recent regulatory changes and international accounting standards.
Key Updates:
- Revised Data File Structures (DFS):
- The updates to the DFS under the Reporting Chart of Accounts (RCOA) were made in light of the adoption of IFRS 9 (International Financial Reporting Standards) and new financial statement formats.
- Banks and Development Finance Institutions (DFIs) are required to use the updated DFS, which is now available on the DAP4 knowledge center. The old DFS version is no longer valid.
Read More: PCDMA Urges SBP to Cut Policy Rate to Single Digit as Inflation Drops
- Revised Submission Deadlines:
- Daily and Weekly Reports: Submission deadlines remain unchanged at two working days for daily and weekly reports.
- Monthly Reports: The deadline for submitting Monthly RCOA reports has been extended from two working days to five working days.
- Quarterly Reports: The deadline for quarterly submissions remains at 12 working days.
- Microfinance Banks (MFBs): Submission frequency for RCOA reports has changed from bi-weekly to weekly, but the submission deadline remains the same.
- Shariah Compliance Enhancement:
- The SBP has adopted the AAOIFI Shariah Standard No. 31, which aims to reduce uncertainty (Gharar) in financial transactions, improving Shariah compliance in Islamic banking.
- This standard has now been made effective, and clarifications have been provided to ensure better implementation.
Compliance and Penalties:
The SBP has emphasized the importance of compliance with these updated rules. Failure to adhere to the new submission timelines or Shariah compliance standards could result in penalties under the Banking Companies Ordinance, 1962.
These revisions underscore the SBP’s efforts to enhance financial transparency, regulatory alignment, and Shariah compliance, ensuring that banking institutions maintain high standards of operation.