Tag Archives: banking

  The banking sector through CY12 to date has faced tough challenges with external factors including law and order situation, political uncertainty, strikes causing closure of bank branches in distressed areas to name a few. According to the Financial Stability review released by SBP for second half of 2011, 12 banks in Pakistan failed to meet the MCR of PKR 8 billion by December 31, 2011. The minimum capital adequacy …

  The banking industry in Pakistan faces tough competition unleashed in the global arena. Information and Communication Technologies (ICT) have transformed the global economy bringing about a revolutionary change in the financial sector. This revolution finds manifestations today in shape of innovative banking products and services such as Automated Teller Machines (ATMs), Internet banking, tele-banking and so on. Online banking has introduced non-traditional channels of delivering services in the banking …

  Pakistan’s Information Communication Technology (ICT) sector has witnessed tremendous growth during the last 15 years or so. Banking sector, though for the wrong reasons, has managed to keep pace with the ICT sector’s fast-paced growth. The abolition of fractional reserve system in 1971 and the post-crisis ‘Quantitative Easing’ have generated a spate of US dollars. These dollars, traveling on the vehicle of foreign trade, have infused the entire global …

  A strong trend in the growth and profitability of banking sector is judged by the stability in the monetary policy, increasing spreads, decrease in nonperforming loans (NPLs) and the selling of stakes by the government in banks to public. The experts see a good trend in banking performance in Pakistan. The country’s banking sector has four categories including large banks with total assets in excess of Rs500 billion; medium …

  While the credit penetration stands at 1/5th of the gross domestic product of the country, the future of the banking sector does not seem to be a very positive one based on raw numbers. With the economy of Pakistan already being burdened by the numerous protests against the existing government and the recurring floods, while an in-depth look into data pertaining to the banking sector, however, reveals a different …

  The trait of insurance in the world over is to cover industrial, commercial and social activities and every individual and group of people as it is an agreement in return of payment for specified loss, death or injuries but since it is disputable either the existing form of insurance are risk free or the certain amount paid to the concerned companies making insurance policies are Islamic or un-Islamic way. …

  Worldwide, governments transfer trillions in cash for salaries, pensions and welfare payments to persons, Pakistan is no exemption. Automating government to Person (G2P) presents tremendous merits. Firstly, the government can save great sums of amount. Secondly, recipients will have advantage from rapid payments with few leakages in the system. Most significantly, a growing body of evidence explains that with suitable delivery replicas, (G2P) payments recipients can be simply brought …

  Islamic finance based on principals of Shariah provides an alternate to conventional banking. Islamic banking industry size is estimated to be $400 billion with potential to grow at minimum 15 percent to 20 percent globally per year, much faster than conventional financial institutions. This has been the same trend over the last 5 years since 2008. Islamic Banking assets globally are estimated to be $270 billion. The sukuk market …

  The banking sector through CY13 faced tough challenges with external factors including law and order situation, political uncertainty, strikes causing closure of bank branches in distressed areas to name a few. The State Bank of Pakistan (SBP) require banks to have minimum capital of Rs10 billion by December 2014, which will be a challenge for banks below the required threshold forcing another round of mergers and acquisitions review. The …

  In Pakistan financial institutions have been the pioneer of technology deployment. This is partly because of the nature of their business and partly because of dealing with their counterparts located in developed countries. The added advantage have been that they have ample funds and also because ‘globally acceptable’ hardware and software are available. They also have on credit ‘development of tailor made programs’ that are Pakistan specific. Deployment of …