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Article 14 (O) of Banking Law empowers Board of Governors to issue and enforce Regulations relating to the provisions of the Law.

The Law, by its very nature, is not very prescriptive. Regulations, thereunder, enable the Central Bank to give more specific and detailed rules. Accordingly, some of the Regulations, illustratively, cover lending ratio, reserve maintenance, risk classification and provisioning requirements for banks.

Regulations provide flexibility to act in the context of dynamic nature of the market and unfolding updates by accredited international standard setters.

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