nationalization and privatization of commercial banks

8/9/2019 Nationalization and privatization of commercial banks

1/24

FINANCIAL

INSTITUTIONSArisha Naz 12022

Institute of Business Management

2/1/1 1

IoBM 201!


2/24

2/1/1

IoBM 201!

2

TOPIC:

ATIONALIZATION AND

PRIVATIZATION OF

OMMERCIAL BANKS IN

PAKISTAN


3/24

C"assifi#ation of Ban$s %arious t&'es a##or(ing to the fun#tion

1) Centra"

2) Commer#ia"

!) In(ustria"

*) Agri#u"tura"

) +,#hange-) In.estment

) Mortgage

) Sa.ing

) Mi#ro finan#ing

2/1/1

IoBM 201!

!


4/24

C"assifi#ation on the asis of

o3nershi' 4u"i#

4ri.ate

Co5o'erati.e

2/1/1

IoBM 201!

*


5/24

C"assifi#ation on the asis of

(omi#i"e 6omesti#

Foreign

2/1/1

IoBM 201!


6/24

C"assifi#ation on the asis of status S#he(u"e(

Non5s#he(u"e(

2/1/1

IoBM 201!

-


7/24

List of Commer#ia" Ban$s o'erating

in 4a$istan7

5 A""ie( Ban$ Limite(5 As$ari Ban$

5 Ban$ A"fa"ah

5 Ban$ AL 8ai

5 Bar#"a&s Ban$ 4a$istan

5 Citian$ 4a$istan5 Fa&sa" Ban$

5 First 9omen Ban$

5 8ai Ban$ Limite(

5 8ai Metro'o"itan Ban$

5 8ai Ban$ A: ;uri#h5 8SBC 4a$istan

2/1/1

IoBM 201!


8/24

5


9/24

nationa"ization means transfer of an& 'ro'ert& or institution from the 'ri.ate

to the o3nershi' of state) 'ro#ess of ringing the assets of a #om'an& into the

o3nershi' of the state

2/1/1

IoBM 201!


10/24

TI6+S 1151 ;)A Bhutto

1

2/1/1

IoBM 201!

10


11/24

Nationa"ization of an$s in 4a$istan In the ear"& &ears of 4a$istan? the an$s 3ere going 3e"" an(

the& '"a&e( an im'ortant ro"e in the e#onomi# (e.e"o'mentof #ountr&) @ But after3ar(s it 3as fe"t that an$s (i( not

'ro.i(e fun(s to3ar(s the most nee(& se#tors of e#onom&) @

=ee'ing in .ie3 this situation the an$ing usiness 3as

nationa"ize( on 1st


12/24

On !1st 6e#emer 1! there 3ere 1! 4a$istani s#he(u"e(

an$s in 4a$istan 3ith 20- ran#hes in a"" o.er the #ountr&)@ :o.t) of 4a$istan too$ #ontro" of a"" 1! #ommer#ia" an$s

an( state an$ of 4a$istan un(er Ban$ Nationa"ization A#t?

1*) :o.t) merge( the 3ea$er an$s 3ith the an$s 3hi#h

ha( strong finan#ia" 'osition to ma$e nationa"ize( an$s in

a"")

2/1/1

IoBM 201!

12


13/24

These an$s are7 I) Nationa" Ban$ of 4a$istan NB4 II)

8ai Ban$ Limite( 8BL III) Mus"im Commer#ia" Ban$MCB I%) Unite( Ban$ Limite( UBL %) A""ie( Ban$ Lt()

ABL

2/1/1

IoBM 201!

1!


14/24

oe#ti.es I) Cre(it for agri#u"ture se#tor) II) Contro""ing un'ro(u#ti.e

e,'en(iture III) +n(ing #ontro" I%) 4rofessiona" management%) Cre(it for sma"" entre'reneurs

2/1/1

IoBM 201!

1*


15/24

A(.antages of nationa"ization of

an$s Fair (istriution of #re(it @ Finan#ing agri#u"ture se#tor @

Ban$ing fa#i"ities for un(er(e.e"o'e( areas @ Contro" o.ernon5(e.e"o'ment e,'en(iture @ Se#urit& of (e'osits @

6e.e"o'ment of an$s @ Ser.i#e moti.e @ 4ri#e stai"it& @

Moi"ization of resour#es @ Use of 'rofit

2/1/1

IoBM 201!

1


16/24

6isa(.antages of nationa"ization of

an$s Lo3 effi#ien#& of an$ em'"o&ees @ 4oor ser.i#e stan(ar( @

4o"iti#a" interferen#e @ Fa.oritism @ >ise in 'ri#e @Una"an#e( (istriution of #re(it @ In#rease in e,'enses @

4oor re#o.er& of "oan @ 6e#rease in 'rofit @ Lo3 #om'etition

2/1/1

IoBM 201!

1-


17/24

4ri.atization of Ban$s 4ri.atization of Ban$s 4ri.atization is the 'ro#ess of in.o".ing

'ri.ate se#tor in the o3nershi' state o3ne( enter'rises) It is(efine( as7 D4ri.atization is the (enationa"ization of an

in(ustr&? transferring from 'u"i# to 'ri.ate o3nershi'E

2/1/1

IoBM 201!

1


18/24

ti(es 15! na3az sharif

1!5154M BB

15200 Shau$at aziz

2/1/1

IoBM 201!

1


19/24

4ri.atization of Ban$s in 4a$istan The oe#ti.es 3hi#h 3ere e,'e#te( & go.ernment ha.e not

een a#hie.e() @ :o.ernment of 4a$istan (e#i(e( to'ri.atize the an$ se#tor) @ A 'ri.atization Commission 3as

set u' on 22


20/24

>u"es for esta"ishing a ne3 an$ in 'ri.ate se#tor @ 4u"i#

"imite( se#tor @ Must e "iste( on S+ of #ountr& @ 20G sharesmust e offere( to genera" 'u"i# @ Minimum #a'ita" of t3o

i""ion @ 6ire#tors of an$ 3i"" not e a""o3e( to san#tion

"oans for themse".es @ Ban$ 3i"" #on#entrate their ran#h

net3or$ in uran areas @ Ban$ 3i"" 'ro.i(e Hui#$ effi#ient

ser.i#es to #ustomers 1!) @ Ban$ 3i"" '"a& an effe#ti.e ro"e in moi"ization of

sa.ings) @ Ban$ 3i"" 'ro.i(e ser.i#es for rura" areas

a##or(ing to ne3 #on#essions an( in#enti.es) @ Ban$ 3i""

ha.e to ai(e & the instru#tions of SB4)

2/1/1

IoBM 201!

20


21/24

Oe#ti.es Better stan(ar( of ser.i#e @ Im'ro.ement in 'erforman#e @

4romote hea"th& #om'etition @ Jui#$ (e#isions @6e.e"o'ment of #a'ita" mar$et @ In#rease in (e'osits @

Se#urit& of "oan

2/1/1

IoBM 201!

21


22/24

A(.antages of 'ri.atization of

an$s Im'ro.ement in 'erforman#e @ Better stan(ar( of "i.ing @

6e#rease in e,'enses @ In#rease in (e'osits @ Se#ure( "oans@ 6e#rease in (efau"t "oans @ 4ro(u#ti.e "oans @ Jui#$

(e#isions @ +#onomi# (e.e"o'ment @ >easona"e 'rofit

2/1/1

IoBM 201!

22


23/24

6isa(.antages of 'ri.atization of

an$s Misuse of "oans @ Unhea"th& #om'etition @ Neg"e#ting sma""

in(ustries @ Neg"e#ting agri#u"ture se#tor @ La#$ of #o5o'eration @ Con#entration of 3ea"th in fe3 han(s @ 4rote#tion

of "a#$ mone& @ A(.an#es to re"ati.es an( em'"o&ees @

Fa.oritism @ 4rofit miti.e

2/1/1

IoBM 201!

2!


24/24

T8AN= KOU

>eferen#es7

3i$i'e(ia

:oog"e

Shau$at aziz 200-

2/1/1

IoBM 201!

2*

nationalization and privatization of commercial banks

Documents