The State Bank of Pakistan (SBP) has updated the classification and provisioning requirements for Microfinance Banks (MFBs) under the implementation of International Financial Reporting Standard 9 (IFRS 9). A circular letter issued to the Presidents/Chief Executives of all MFBs announced the changes, particularly focusing on the Days Past Due (DPD) mapping as outlined in Annexure-C of SBP’s IFRS 9 Application Instructions.
The revised instructions aim to adjust the DPD mapping, in line with the changes in classification and provisioning requirements for MFBs. The SBP clarified that other previously issued instructions on the matter will remain unchanged.
