KARACHI - State Bank of Pakistan (SBP) has asked all banks and DFIs to report the maturity gaps of all assets and liabilities based on “contractual maturities”, in addition to the reporting based on “expected maturities” to further enhance disclosures on liquidity risk.

According to BSD Circular Letter No 2 of 2013 dated January 14, the banks/DFIs have been advised to also disclose the methodology used to determine behavioral maturity of “non-contractual maturity” assets and liabilities, while reporting gaps based on “expected maturities”.

The circular said that banks should report both of the above disclosures under Note 45.4.1 of the revised form of Annual Financial Statements issued vide BSD Circular No. 4 dated February 17, 2006. These instructions shall become effective from December 31, 2012.  The banks shall continue to report their maturity gaps only on “expected maturity” basis in quarterly Data File Structure under Reporting Chart of Accounts as envisaged in the above mentioned Circular letter, the BSD Circular added.