SBP warns banks against default on sovereign loans

[Norwegian]

The inflation kicked in as soon as the currency support was withdrawn ( no longer overvalued which was used to keep the inflation artificially subdued by flooding the market with cheap imports against the excess liquidity injected by government through direct SBP borrowing).

This is the root cause of the damage done to us.

Exactly

Increase your revenue and stop relying on the printer is the message.

Pakistani govts in the past behaved like US that they could print unlimited money without consequences

 

[blueazure]

You do realise the consequences of government just spending printed money as much as it likes?

PKR is still crashing -

update for you

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SBP autonomy and its 'benefits' will be visible in a few months, its rather early to speculate IMO

 

[blueazure]

You actually described the previous government perfectly.

not sure how the current govt is any different

 

[Patriot forever]

PKR is still crashing -

update for you

--------------------


SBP autonomy and its 'benefits' will be visible in a few months, its rather early to speculate IMO

Pkr is doing well under immense pressure for past 2 months or so, the recent mild weakening is due to dollar appreciating in view of fed interest hike starting from March, dollar bond yields are also increasing. In the broader aspect pkr is inherently weak due to our chronic low dollar inflows. REER is falling which means rupee will strengthen once the international commodity prices fall back. I don't expect it to depreciate much since the pkr has already adjusted to ( CAD) which has peaked in Dec, minor fluctuation here and there.

.....

SBP autonomy is already practiced for the last 3 years, from interest rate to currency to government borrowing. The bill is just to formalise it and to a degree ensure the longetivity of reforms undertaken.

 

[ARMalik]

Think of this - Which State bank in any country on this Planet declares its own Government and people can BANKRUPT on its OWN CURRENCY !!! Only in the banana Republic !!

Just imagine who are these people who have sold off their own Currency and CENTRAL BANK to foreigners?? It is obviously the corrupt Establishment of Pakistan and its puppets like IK and other PM clowns before him. This country is going down the toilets faster than then a bullet !!

 

[blueazure]

Think of this - Which State bank in any country on this Planet declares its own Government and people can BANKRUPT on its OWN CURRENCY !!! Only in the banana Republic !!

Just imagine who are these people who have sold off their own Currency and CENTRAL BANK to foreigners?? It is obviously the corrupt Establishment of Pakistan and its puppets like IK and other PM clowns before him. This country is going down the toilets faster than then a bullet !!

if you look closely, over the few couple of months, PTI has hired good english writing skills trolls on the internet / twitter etcetra who post these 'feel good' news and twist words to push a certain narrative

a few examples :-

1. SBP autonomy is good . an independent SBP will do wonders ( wont tell you how)

2. inflation is just relative . look at EU/Us ( wont tell you about PPP)

3. GDP is 5.7 % ( wont tell you rebasing )

4. PKR crashing is good

most of all, they will not present any evidence, arguments will be just conjectures . vague at best

 

[waq]

SBP is merely asking the banks to implement IFRS-9 and recognize provision for expected credit losses (ECL).... IFRS -9 has so far not been adopted by the banks and the older IAS-39 was in effect... there is no warning of default by SBP as the OP has put it lol.

 

[Patriot forever]

SBP is merely asking the banks to implement IFRS-9 and recognize provision for expected credit losses (ECL).... IFRS -9 has so far not been adopted by the banks and the older IAS-39 was in effect... there is no warning of default by SBP as the OP has put it lol.

Thank you bro warna reading some posts above is like jahalat ka omelette.

https://twitter.com/x/status/1485203480768057347

 

[ARMalik]

SBP is merely asking the banks to implement IFRS-9 and recognize provision for expected credit losses (ECL).... IFRS -9 has so far not been adopted by the banks and the older IAS-39 was in effect... there is no warning of default by SBP as the OP has put it lol.

A newbie with 2-posts CLAIMING IT IS GOOD FOR EVERYONE !! Great ! Hopefully you are getting paid well for saying this BS.

Thank you bro warna reading some posts above is like jahalat ka omelette.

https://twitter.com/x/status/1485203480768057347

Of course it is paradise in your world !! Are you two making out and holding hands or what? Don't forget to suck on that jahalat ka omelette.

 

[waq]

A newbie with 2-posts CLAIMING IT IS GOOD FOR EVERYONE !! Great ! Hopefully you are getting paid well for saying this BS.

Its an accounting issue if I put in layman terms and will not affect the comman people in any way.

 

[Norwegian]

Think of this - Which State bank in any country on this Planet declares its own Government and people can BANKRUPT on its OWN CURRENCY !!! Only in the banana Republic !!

Just imagine who are these people who have sold off their own Currency and CENTRAL BANK to foreigners?? It is obviously the corrupt Establishment of Pakistan and its puppets like IK and other PM clowns before him. This country is going down the toilets faster than then a bullet !!

Pakistan is already bankrupt through reckless borrowing by govts of the past. This govt just made it official

 

[ARMalik]

Its an accounting issue if I put in layman terms and will not affect the comman people in any way.

Don't worry about using layman terms. You can Use whatever terms you want to use. Let's see how you explain it.

 

[blueazure]

Its an accounting issue if I put in layman terms and will not affect the comman people in any way.

its a risk issue

read the post again by OP

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everyone in the banking industry knows how the commercial banks are regulated by SBP . a comm bank cannot move a pen without SBP nod

tomorrow, if your newly independent SBP instructs comm bank to NOT issue any loan to govt, the comm bank will have no option but to comply

 

[waq]

Don't worry about using layman terms. You can Use whatever terms you want to use. Let's see how you explain it.

Explain what exactly?

its a risk issue

read the post again by OP

-------------------


everyone in the banking industry knows how the commercial banks are regulated by SBP . a comm bank cannot move a pen without SBP nod

tomorrow, if your newly independent SBP instructs comm bank to NOT issue any loan to govt, the comm bank will have no option but to comply

No sir... the article is talking about two issues... one about the application of IFRS-9.... that is an accounting issue... the second issue is what you have higlighted in your post... even if central bank issues such instructions its not a risk issue for the banks...

 

[blueazure]

. even if central bank issues such instructions its not a risk issue for the banks...

a commercial bank would go out of business if it stops lending to the govt

i rest my case