Glossary
Chapter 2- Money and Credit
Other Depository Corporations (ODCs) The other Depository Corporations consists of all resident financial corporation’s (except the central bank) and quasi-corporations that are mainly engaged in financial intermediation and that issue liabilities included in the national definition of broad money. It includes Scheduled Banks, Development Financial Institutions (DFIs), Microfinance Institutions (MFIs) and all Depository NBFIs. Depository Corporations (DCs) Depository Corporations refers collectively to the Other Depository Corporations (ODCs) and Central Bank (CB) where Central Bank (CB) is the national financial institution that exercises control over key aspects of the financial system and caries out such activities as issuing currency, regulation money supply and credit, managing international reserves, transacting with the IMF, and providing credit to other depository corporations. Reserve Money (M0) Reserve Money is an indicator used to measure money supply in the economy and includes currency in circulation (held with Public), other deposits with State Bank of Pakistan; currency in tills of schedules bank’s and bank deposits with SBP. M0 is used to measure the most liquid assets which can be spent most easily. M0 is sometimes referred to as the monetary base. Deferred Tax Assets The amount of income taxes recoverable in foreseeable future periods in respect of: i) Deductible temporary differences ii) The carry forward of unused tax losses; and iii) The carry forward of unused tax credits. Deferred tax assets should be recorded on the basis of reasonable realizable value of such assets in foreseeable future. Deferred Tax Liabilities The amount of income taxes payable in future periods in respect of taxable temporary differences. Broad Money (M2) Broad Money is an indicator used to measure money supply in the economy and