4. Banker’s funds:
The funds available to a banker for the
purpose of his business comprise of the following.
(1)Banker’s own paid –up capital, the reserve
funds, and liquids assets.
(2) Money received from depositor in current,
and fixed.
(3) Borrowing from other banks and financial
institutions.
5. Bank’s capital:
The amount with which a banking company
in Pakistan has been registered is called the Nominal or
Authorized capital. It is further divided into two categories
1 Paid-up capital
2 Subscribed capital
6. Bank's capital:
Section 13(1) of the banking
companies (Amendment) Ordinance , 2000, has
prescribed that the minimum authorized capital for
banking company in Pakistan is to be determined by
the state bank of Pakistan .Sub section (2) further
explains the similar requirement for foreign banks
operating in Pakistan .
7. The Reserve fund:
This fund consists of accumulated un-divided
trading profits. Section 21 of the banking Companies
Ordinance, 1962, has made it obligatory for every
banking company incorporated in Pakistan to create
a reserve funds two manner .
8. Borrowing from other banks and financial
institution:
Sometimes banks are invited to finance
profitable projects but they may not be able to
mobilize their on resources for them. The banks
resort to borrowings from other banks and fina-
ncial institutions for short term and repay these
funds as soon as they mobilize there own funds.
9. Type of deposits:
Bank deposits can be broadly classified as,
1 Current Deposits
2 Fixed Deposits
3 Saving Deposits
10. Saving Deposit:
Saving Deposit Accounts were
introduced in England by the Trustee savings
banks which were established under trustee
savings bank Act,1863, for receipts of money
from depositors without any benefit to the trus-
tee or Organizers.
The main object of savings deposits was to
encourage thrift among people small means like
children, married and household women , who
could deposit only a very small amount at a time.
11. Saving Deposits:
Saving Deposits Accounts in India were first
started in the presidency town of Bombay,
Calcutta and Madras during 1833 to 1835.By
1882, POSB, also started functioning in all
principal post offices in India.
In Pakistan a savings deposit account
can be opened with a very small amount of
money, and the depositor is issued a cheque
books for withdrawals. Profit is paid at a
flexible rate calculated on Six-Monthly basis.
