KARACHI - The SBP has decided to prohibit all banks from using securities classified under ‘Held to Maturity’ category for borrowing from SBP in Open Market Operations (OMOs)/ reverse repo facility with effect from 19th October, 2012, according to circular issued SBP here on Friday.

Given the liquidity position of the market, it has been decided that securities classified under Held to Maturity category cannot be used for borrowing from SBP in OMOs/ reverse repo facility with effect from 19th October, 2012, according to DMMD Circular issued to the Presidents/Chief Executive Officers of all scheduled banks/DFIs/PDs.

It may be recalled that banks were earlier allowed to use the securities classified under “Held to Maturity” category for borrowing under SBP repo facility (OMO)/ discount window.