SBP Revises MFB Rules for IFRS 9 Compliance

The State Bank of Pakistan (SBP) has revamped the classification and provisioning requirements for Microfinance Banks (MFBs) to align with the International Financial Reporting Standard 9 (IFRS 9). A circular letter dispatched to all Presidents/Chief Executives of MFBs detailed the updates, with a specific focus on revising the Days Past Due (DPD) mapping as delineated in Annexure-C of the SBP’s IFRS 9 Application Instructions.

These revised guidelines aim to refine the DPD mapping to harmonize with the updated classification and provisioning standards for MFBs. The SBP emphasized that all other prior instructions on this matter remain unchanged.