Macro Analysis /
Pakistan

Pakistan Banks: Central bank raises CRR for banks

  • SBP has increased the average CRR for scheduled banks from 5% to 6%

  • Assuming 5% spread we estimate a c. PKR8.5bn (or 3.0%) hit to pre-tax banking sector profits

  • Net impact is marginal. Primary aim is to reduce monetary aggregates, which improved post Covid-19

Yusra Beg
Yusra Beg

Senior Investment Analyst

Intermarket Securities
15 November 2021