KARACHI: The State Bank of Pakistan (SBP) has amended prudential regulations to encourage enhanced participation and investment of banks and development financial institutions in the real estate investment trusts (REITs). “In order to further boost activities in these sectors, the SBP has now made changes to certain provisions of existing Prudential Regulations for Corporate & Commercial Banking to encourage enhanced participation and investment of banks/DFIs in the REITs,” the statement read. REITs are asset management companies that own or finance income-producing real estate across a range of property sectors. REITs deploy funds by investing in real estate properties thereby enhancing the investment in the housing and construction sector to contribute to economic growth and development. In addition, SBP has also relaxed restrictions, in existing regulations, on seeking financing against shares of listed group companies.

Source: Pakistan Today March 23, 2021 14:49 UTC