Al Meezan Investment Management Limited (Al Meezan) is the largest Shariah compliant asset management company in Pakistan with a solid track record of over 17 years of fund management.Incorporated on 27th February 1995, it is a group company of Meezan Bank Limited and Pakistan Kuwait Investment Company Private Limited and is currently managing assets of over Rs.43 Billion.Al Meezan is registered as a Non Banking Finance Company under the Non Banking Finance Companies (Establishment and Regulation) Rules, 2003 and NBFC Entities Regulations 2007 with the Securities and Exchange Commission of Pakistan (SECP) to carry on the business of asset management and investment advisory. As an Investment Adviser, Al Meezan is authorized to manage discretionary and non-discretionary portfolios for its clients. It has also been licensed as Pension Fund Manager to manage Voluntary Pension Funds under Voluntary Pension System Rules, 2005. Al Meezan has got Management Quality Rating “AM2” assigned by JCR-VIS.
Al-Meezan Bank Largest Shariah Incorporated compliant on asset th February 27 management 1995. company . Al Meezan is registered as a 270 Branches Non Banking across 83 cities Finance in Pakistan. Company.
Vision Establish Islamic banking as banking of first choice to facilitate the implementation of an equitable economicsystem, providing a strong foundation for establishing a fair and just society for mankind.
Mission To be a premier Islamic bank, offering a one-stop shop forinnovative value-added products and services to our customerswithin the bounds of Shariah, while optimizing the stakeholders’ value through an organizational culture based on learning, fairness, respect for individual enterprise and performance.
Meezan Bank Pak Kuwait Limited 65% Investment Company(PVT) Ltd 30% Employees of Al-Meezan 05% Shareholdings’
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Monetary Policy (Credit Control) “The changes in money supply by the central bank to influence interest rate and achieve some other economic objectives is called monetary policy” Bank Credit dominant part. Credit is lifeblood of modern business. Too much credit leads to inflation.
Objectives of Credit Control• Regulate money supply• To increase investment• To increase employment opportunities• To control price level
Methods to control credit (tools of monetary policy)Quantitative ControlsQualitative Controls
Quantitative Controls• Discount rate policy – Rate of interest at which a central bank provides loans to commercial banks.• Open Market Operations – Sale and purchase of government securities in the open money market by the central bank.• Variation in Reserve Requirement – Changing the percentage of reserve requirements of member banks.• Credit Rationing – Fixing limit up to which central bank can give loans to it’s member banks.
Qualitative Controls• Change in Margin Requirements – Change in margin of loan against security.• Moral persuasion – Advising and Guidance to member banks.• Publicity – Central bank undertakes publicity about it’s policies.• Direct Action
Monetary Policy Objectives in Pakistan• The principal objectives of monetary policy in Pakistan is to: – Control Inflation – Maintaining price stability – Strong monetary growth – Achieving maximum employment rate
Transaction cost “Transaction cost are fees charged by financial companies in the sales and purchases of securities” OR“ A fee charged by a financial intermediary such as a bank, broker or underwriter”
Transaction cost (Cont’d)• The transaction costs to buyers and sellers are the payments that banks and brokers receive for their roles in these transactions.• There are also transaction costs in buying and selling real estate.• These fees include the agents commission, government fees.
Transaction Cost (example)Consider the prospective purchaser of arefrigerator. The purchase price of therefrigerator that is eventually bought is notthe only cost involved. Transaction costs suchas the time spent researching the best brandand model, and the cost of travelling towherever that item is available for purchaseincrease the real cost of the purchase.
Information cost “Cost incurred from completing due diligence which involves the expenses related to the investigation of an investment or financial activity and is necessary to determine profitability.” OR“Costs incurred in transaction including the analysis and evaluation of the advantages of a financial asset as an investment.”