Question

Banking Industry of Pakistan, is it growing or not and types of bank and then its statistics

Answer 1

INTRODUCTION:

•Banking in Pakistan formally began in South Asia, during which much of Pakistan was controlled by the British Empire. In 1947, Pakistan gained independence from the British Raj.

•After independence, the State Bank of Pakistan was established as the central bank of the country, with its headquarters in Karachi. Prior to independence, the Reserve Bank of India acted as the central bank for what became Pakistan. The banking sector in Pakistan possesses a wide spectrum of financial institutions 

 

IS IT GROWING OR NOT ?

•Despite the pandemic situation and overall economic slowdown that was expected in financial year 2020, it proved to be a promising year for the banking sector in Pakistan with overall increase in profitability by 30.7% and 37.6%.

ASSETS & DEPOSITS

•Assets growth was increase to Rs. 28,849 in 2020 from Rs. 21,729 in 2019

•deposits growth was increased to Rs. 18,455 in 2020 from Rs. 15,865 in 2019

TYPES OF BANK

•COMMERCIAL BANK, The term commercial bank refers to a financial institution that accepts deposits, offers checking account services, makes various loans, and offers basic financial products like certificates of deposit (CDs) and savings accounts to individuals and small businesses. A commercial bank is where most people do their banking.

•FOREIGN BANK, Foreign bank is a type of that is obligated to follow the regulations of both the home and host countries. Because the foreign bank branch has loan limits based on the total bank capital, they can provide more loans than subsidiary banks. That is because the foreign bank branch, while possibly small in one market, is technically part of a larger bank. Hence, it enjoys the capital base of the larger entity.

•ISLAMIC BANK, Islamic banking, also referred to as Islamic finance or shariah-compliant finance, refers to financial activities that adhere to shariah (Islamic law). Two fundamental principles of Islamic banking are the sharing of profit and loss, and the prohibition of the collection and payment of interest by lenders and investors

 

STATISTICS

•ASSETS

•DEPOSITS

•GROWTH

• Introduction
• Is it growing or not?
• Assets and Deposits
• Types of Banks
• Statistics