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Tag Archives: DFIs

Role of banks in the development of SMEs in Pakistan

Role of banks in the development of SME in Pakistan

Small & Medium Enterprises (SMEs) are the important components of economic development. This sector can generate increased productivity & new investment. SMEs have the ability to grow the industrial and commercial tax base. Therefore, its value cannot be ignored and it is the yardstick of most of the economic issues like revenue generation, poverty, unemployment and a slow growth rate. It can generate opportunities for a very heterogeneous group concerning …

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Green Banking – a new frontier for the banks in Pakistan

Green Banking – a new frontier for the banks in Pakistan

State Bank of Pakistan (SBP) through its recent initiatives and actions has focused its attention on finance-deficient areas such as financial inclusion, low cost housing facility, agricultural credit, SME finance and most importantly, the Green Banking phenomenon. In accordance with its strategic policy, given the importance of SMEs being attached to our economic development, SBP is playing a facilitator’s role, aimed to increase the orderly flow of financing to SMEs. …

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Making banks “financial super markets’

  After the un-ceremonial demise of DFIs and Investment banks, commercial banks have been undertaking many activities, which are not part of their prime mandate. They also undertake medium and long term financing that is not the role of commercial banks. However, to make it look more prudent some of the commercial banks have established fully-owned subsidiaries to undertake ‘other business’ that include insurance, asset management, leasing and Modarabas. This …

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