Pakistan Banks: SBP imposed MDR on Islamic Banks for individuals Removed MDR for Conventional Banks for companies – By Topline Research

<p></p><ul><li><span style="font-family:Arial, Helvetica, sans-serif;font-size:medium;">State Bank of Pakistan (SBP) has removed the Minimum Deposit Rate (MDR) requirement for all conventional banks on deposits from financial institutions, public sector enterprises, and public limited companies. The MDR will now only be applicable to deposits of individual account holders. Since last few days there were market gossip on this development.</span></li></ul><ul><li><span style="font-family:Arial, Helvetica, sans-serif;font-size:medium;">This shall be effective from January 01, 2025.</span></li></ul><ul><li><span style="font-family:Arial, Helvetica, sans-serif;font-size:medium;">It will benefit banks with a higher mix of corporate deposits, as they are no longer required to pay any MDR. Banks will now pay negotiated rates to corporates.<...