A notification issued by SBP on Wednesday related to statutory liquidity requirements (SLR) for Islamic Banks has been expanded to 14 per cent of total demand liabilities, including time deposits with tenor of less than a year from April 1.

The statutory liquidity requirements to convert some of their cash holdings into financial papers, like treasury bills, Ijara Sukuk and other such instruments.

The analyst stated that the higher level of SLR may beneficial for Islamic banks in the current circumstances, there is surplus liquidity present in the system, along-with limited avenues for indirect investment.