black-hawk_101
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I would like to know and discuss about the best commercial banks of Pakistan. How many branches they have in Karachi and in the rest of Pakistan and their reserves too.
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MCB is the best Conventional one in terms of Profits I think and HBL is Largest one in Pakistan.I would like to know and discuss about the best commercial banks of Pakistan. How many branches they have in Karachi and in the rest of Pakistan and their reserves too.
MCB is the best Conventional one in terms of Profits I think and HBL is Largest one in Pakistan.
AFAIK State Bank ask a certain Reserve to be HOLD by EVERY BANK in Pakistan and State Bank also takes Preemptive Actions if they dont Hold the Reserves as per State Bank and this makes the Risk of Default very Low but not completely Eliminated as last year there was whole KASB Bank issue took Place where State Bank took over the Bank before it was close to go Default. So Pakistani Banking System is quite SAFE and SECURE.Banking in Pakistan is safe with big 5 banks as other banks are historically vulnerable to default and other risks.
AFAIK State Bank ask a certain Reserve to be HOLD by EVERY BANK in Pakistan and State Bank also takes Preemptive Actions if they dont Hold the Reserves as per State Bank and this makes the Risk of Default very Low but not completely Eliminated as last year there was whole KASB Bank issue took Place where State Bank took over the Bank before it was close to go Default. So Pakistani Banking System is quite SAFE and SECURE.
Big Five Banks are the only ones who can Request Credit Directly from State Bank to manage their Money Supply and they can Ask State Bank 7 Times per Quarter but they also have to HOLD Certain Reserve at all time and it is Reflected in their Equity side of Balance Sheet.
Safeguarding Risk is what makes the Banking System in Pakistan Safe actually. SBP has a system in place for Potential Bankruptcy for Banks and that is what everyone wants for Safe Banking.If you think it is that simple to safeguard risk then why KASB got into mess? its not as simple as you think.
Safeguarding Risk is what makes the Banking System in Pakistan Safe actually. SBP has a system in place for Potential Bankruptcy for Banks and that is what everyone wants for Safe Banking.
The reason why KASB went into mess was because KASB wasnt able to HOLD the certain Reserve in their Equity for Continues 4 Quarters AFAIK and that cause SBP to intervene actually but the way the situation handled caused lot of chaos in Pakistani Banking Sector over all and this has also effected Consumer Confidence on Banks as a whole rather then KASB Consumer Confidence.
It was well taken action but the Market has its own way of Comprehending the news and it involves lots of Rumors as well as Past Examples so any Drastic Action caused lot of Panics in our Corporate sector as well as our Stock Market which Effects whole Country when the news reaches to common People. Anyways as for me the Banking Sector of Pakistan is Safe and it is all Thanks to REGULATORY MEASURES introduced by SBP after 2008 Financial Crisis.
The situation had got Better since 2008. The Global Financial Crisis was a wake-up call for SBP as well as Commercial Banks and Stronger Regularity Measures have been Introduced and also we witness the ACTIONS on the basis of bad Performance according to regulations so now I believe Pakistani Banking System is SAFER then PAST and SBP has become more and more Vigilant about our Banking system now a days so Banking system has less Risk as long as Market Risk does not comes in action as in case of Global Financial Crisis that effected the whole Global Market not just Banking System but in Stable situation it wont present the threat.For your information only big 5 can handle any kind of financial risk and crisis situation in Pakistani Banking sector, previous record shows that all other foreign and local (medium and small) banks had suffered not just to to liquidity issues but mismanagement and trying to impose western style high risk financing system which hurt them most.
The Traditional Style Banking is still in Practice what I have been talking about was CENTRAL BANK REGULARITIES so it has not much to do with Global Financial Crisis instead it is Lose Command over Bank's use of Funds that cause Collapse in the past as Banks issued lot of Loans in USA to Property Market without considering their Reserve Position and when USA Property Market Collapsed the Whole Banking system in the World took hit and another bad thing was Cooked up Credit Ratings of USA Banks which causes growth of investment of British and European Banks in USA Banking Sector and the whole system Collapse took their Investment with them as well.The big 5 banks still practice traditional style banking which has kept them safe even in world economic crisis when big US & EU banks got hit.
The situation had got Better since 2008. The Global Financial Crisis was a wake-up call for SBP as well as Commercial Banks and Stronger Regularity Measures have been Introduced and also we witness the ACTIONS on the basis of bad Performance according to regulations so now I believe Pakistani Banking System is SAFER then PAST and SBP has become more and more Vigilant about our Banking system now a days so Banking system has less Risk as long as Market Risk does not comes in action as in case of Global Financial Crisis that effected the whole Global Market not just Banking System but in Stable situation it wont present the threat.
The Traditional Style Banking is still in Practice what I have been talking about was CENTRAL BANK REGULARITIES so it has not much to do with Global Financial Crisis instead it is Lose Command over Bank's use of Funds that cause Collapse in the past as Banks issued lot of Loans in USA to Property Market without considering their Reserve Position and when USA Property Market Collapsed the Whole Banking system in the World took hit and another bad thing was Cooked up Credit Ratings of USA Banks which causes growth of investment of British and European Banks in USA Banking Sector and the whole system Collapse took their Investment with them as well.
No but part of Finance related position so I do have a basic knowledge of things but never involved in Money Market even only Observed.Do you work in a bank??
No but part of Finance related position so I do have a basic knowledge of things but never involved in Money Market even only Observed.
They do exert lot of Controls and now a days in Banks a separate departments are made just for Catering SBP Requirements. Of Course they wont be looking after everything in our Banking System but when their is a serious Situation then they do come to the equation and act accordingly and this KASB issue was one example of it. What they are providing our Banking system by injecting Cash is CREDIT and they want a RETURN and I dont think they would let go of their Return by letting the Banks COLLAPSE to give them WRITE OFFS. Its like a civilized Loan Sharks which provide loan and then ask for return by hook or by crook in a Civilized White Collar Manner.But you are over estimating about SBP. They don't intervene in all things where they should do.
My Advice to you would be open an Account on any LARGE Bank NEAREST to your Residence because it is better to have all the support available Nearby then Far away.I'm planning to open an account in Meezan Bank. Any advice?