Thus, the banks have come to play a dominant and useful role in promoting economic development by- mobilising the financial resources of the community and by making them flow into the desired channels.
The serious capital deficiency in under-developed countries is reflected in the small amount of capital equipment per worker and in limited knowledge, training and scientific advance.
These are serious handicaps in economic development and here the banks can play a useful role: The role of banks in economic development is to remove the deficiency of capital by stimulating savings and investment.
The report said that strong demand from textile and cement sectors had improved gross advances to private sector by 7.3 percent on a quarterly basis and 16.4 percent on a yearly basis despite retirement of credit in chemical and pharmaceutical sectors.
February 28 report of Moody’s on the banking system’s outlook, says, 9.2 percent of gross advances of the country’s banking industry are non-performing loans (NPLs).
During past five year period (2010-16), the NPLs relative to gross advances have declined from 15 to 9 percent.
The country’s banking sector witnessed unprecedented growth after 2001 due to low interest rate and product innovation in consumer financing.
The banking sector plays a critical role in mobilization of savings from households from across the country and placing them at the disposal of entrepreneurs.
Banking sector accounts for around three-fourth of Pakistan’s financial sector.
In this way, they promote the development of agriculture, trade and industry.
It is difficult to see how, in the absence of banks, could small savings be stimulated or even made possible.
Comments Essay On Banking Sector In Pakistan
Banking sector advancement in Pakistan - Pakistan & Gulf Economist
Apr 9, 2018. A robust banking sector is a healthy sign for the economy of a country. It is this sector that plays the role of financial intermediation between.…
Pakistan's Banking Sector Industry Analysis - 6152 Words Bartleby
Nov 26, 2008. Free Essay Banking Industry in Pakistan Banking is one of the most sensitive businesses all over the world. Banks play very important role in.…
Pakistan's Banking Sector - Dr. Ishrat Husain
Pakistan's Banking Sector. Current Situation and Critical Issues. ISHRAT HUSAIN. Pakistan's banking sector reforms which were initiated in the early 1990s.…
Banking industry of pakistan - Free Finance Essay - Essay UK
Over the years, banking system in Pakistan shown enormous growth and potential. The performance and stability indicators showed significant improvement in.…
Privatization Pakistan's Banking Sector - UK Essays
May 18, 2017. The topic of the research is “The impact of the privatization on the banking sector of Pakistan”. “Privatization is the pr.…
Essay on the Role of Banks in Economic Development
A sound banking system mobilizes the small and scattered savings of the. estimating the capital needs of China, India and Pakistan, pointed out that they must.…
The Banking Sector - State Bank of Pakistan
Banks, despite the emergence of private sector competitors following the banking sector liberalization. 10 on Islamization of Financial System in Pakistan.…
Pakistan - Banking Systems export.gov
Oct 9, 2018. The banks have increased their loans to the government and the private sector credit has decreased in last few years. Though the banks'.…
Bank system in pakistan - SlideShare
Jan 8, 2012. BANKING SYSTEM IN PAKISTAN; 2. INTRODUCTION TO BANKING Origin Of Word Banke, banc, banque, or banck Definition Under.…
Banking Industry Of Pakistan Finance Essay - Uni Assignment Centre
There was considerable impact on Pakistan's banking sector due to the reforms in 1980s and 1990s. Privatization and entry of new banks gave competition and.…