The document provides an overview of banking and financial institutions in Pakistan. It discusses strategic objectives of the State Bank of Pakistan including broadening access to financial services. It outlines various initiatives to promote lending in key sectors such as SMEs, microfinance, exports, and agriculture. It also discusses efforts to ensure soundness of the financial sector and maintain price stability. The types of lending including fund-based, non-fund-based and other modes are explained. Priority sectors for bank lending like agriculture, small industries are highlighted.
Credit Risk Management and Loan Recovery in Nigerian Deposit Money Banksijtsrd
The quality of loan recovery in Nigerian deposit money banks is presently impaired with the incidence of a large portfolio of non performing loans. The position of the banks to also act as prime movers of economic development and to effectively manage their credit risk, has not been effective the study therefore examined the potency of credit risk management in addressing loan delinquency or high non performing loan of deposit money banks in Nigeria. In view of this, investigation was conducted on the effect of credit risk architecture on loan recovery. Primary data was used for the study and the ordinary least square was used for data analysis and it was concluded that effective credit risk architecture could enhance loan recovery of deposit money banks in Nigeria. Sunny B. Beredugo | Clifford I. Akhuamheokhun | Bassey Ekpo "Credit Risk Management and Loan Recovery in Nigerian Deposit Money Banks" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-5 | Issue-2 , February 2021, URL: https://www.ijtsrd.com/papers/ijtsrd38430.pdf Paper Url: https://www.ijtsrd.com/management/accounting-and-finance/38430/credit-risk-management-and-loan-recovery-in-nigerian-deposit-money-banks/sunny-b-beredugo
Watch out full video on youtube-
https://youtu.be/zBUSzKnK9bw
Principles of Credit Lending
1. Safety
2. Liquidity
3.Spread
4. Security
5. Purpose
6. Profitability
7. Policy Validation
Thank You For Watching
Subscribe to DevTech Finance
A current asset is either cash or an asset (e.g. stock) that can be converted into cash within a year and is often used to pay off current liabilities.
Current assets typically include categories such as cash, marketable securities, short-term investments, accounts receivable , prepaid expenses, and inventory.
Approaches to Financing Current Assets.
Instruments in raising finance.
advantages and disadvantages of trade credit.
inter Corporate Deposits , etc.
Credit Risk Management and Loan Recovery in Nigerian Deposit Money Banksijtsrd
The quality of loan recovery in Nigerian deposit money banks is presently impaired with the incidence of a large portfolio of non performing loans. The position of the banks to also act as prime movers of economic development and to effectively manage their credit risk, has not been effective the study therefore examined the potency of credit risk management in addressing loan delinquency or high non performing loan of deposit money banks in Nigeria. In view of this, investigation was conducted on the effect of credit risk architecture on loan recovery. Primary data was used for the study and the ordinary least square was used for data analysis and it was concluded that effective credit risk architecture could enhance loan recovery of deposit money banks in Nigeria. Sunny B. Beredugo | Clifford I. Akhuamheokhun | Bassey Ekpo "Credit Risk Management and Loan Recovery in Nigerian Deposit Money Banks" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-5 | Issue-2 , February 2021, URL: https://www.ijtsrd.com/papers/ijtsrd38430.pdf Paper Url: https://www.ijtsrd.com/management/accounting-and-finance/38430/credit-risk-management-and-loan-recovery-in-nigerian-deposit-money-banks/sunny-b-beredugo
Watch out full video on youtube-
https://youtu.be/zBUSzKnK9bw
Principles of Credit Lending
1. Safety
2. Liquidity
3.Spread
4. Security
5. Purpose
6. Profitability
7. Policy Validation
Thank You For Watching
Subscribe to DevTech Finance
A current asset is either cash or an asset (e.g. stock) that can be converted into cash within a year and is often used to pay off current liabilities.
Current assets typically include categories such as cash, marketable securities, short-term investments, accounts receivable , prepaid expenses, and inventory.
Approaches to Financing Current Assets.
Instruments in raising finance.
advantages and disadvantages of trade credit.
inter Corporate Deposits , etc.
17 Commercial Bank OperationsCHAPTER OBJECTIVESThe specific ob.docxaulasnilda
17 Commercial Bank Operations
CHAPTER OBJECTIVES
The specific objectives of this chapter are to:
· ▪ describe the market structure of commercial banks,
· ▪ describe the most common sources of funds for commercial banks,
· ▪ explain the most common uses of funds for commercial banks, and
· ▪ describe typical off-balance sheet activities for commercial banks.
Measured by total assets, commercial banks are the most important type of financial intermediary. Like other financial intermediaries, they perform the critical function of facilitating the flow of funds from surplus units to deficit units.
17-1 BACKGROUND ON COMMERCIAL BANKS
Up to this point, the text has focused on the role and functions of financial markets. From this point forward, the emphasis is on the role and functions of financial institutions. Recall from Chapter 1 that financial institutions commonly facilitate the flow of funds between surplus units and deficit units. Commercial banks represent a key financial intermediary because they serve all types of surplus and deficit units. They offer deposit accounts with the size and maturity characteristics desired by surplus units. They repackage the funds received from deposits to provide loans of the size and maturity desired by deficit units. They have the ability to assess the creditworthiness of deficit units that apply for loans, so they can limit their exposure to credit (default) risk on the loans they provide.
17-1a Bank Market Structure
In 1985, more than 14,000 banks were located in the United States. Since then, the market structure has changed dramatically. Banks have been consolidating for several reasons. One reason is that interstate banking regulations were changed in 1994 to allow banks more freedom to acquire other banks across state lines. Consequently, banks in a particular region are now subject to competition not only from other local banks but also from any bank that may penetrate that market. This has prompted banks to become more efficient in order to survive. They have pursued growth also as a means of capitalizing on economies of scale (lower average costs for larger scales of operations) and enhanced efficiency. Acquisitions have been a convenient way to grow quickly.
As a result of this trend, there are less than half as many banks today as there were in 1985, and consolidation is still occurring. Exhibit 17.1 shows how the number of banks has declined over time, thereby increasing concentration in the banking industry. The largest 100 banks now account for about 75 percent of all bank assets versus about 50 percent in 1985. The largest five banks now account for more than 50 percent of bank assets, versus 30 percent in 2001. JPMorgan Chase & Company is the largest bank in the United States with about $2.3 trillion in assets, while Bank of America Corporation has about $2.2 trillion in assets and Citigroup Inc. has about $1.9 trillion in assets.
Large banks have expanded over time by acquiring othe ...
savings bank account services by karnataka bankAprameya joshi
the document starts with introduction to financial services then goes with comercial banks and then speaks about the profile of karnataka bank and savings bank account services of karnataka bank
What website can I sell pi coins securely.DOT TECH
Currently there are no website or exchange that allow buying or selling of pi coins..
But you can still easily sell pi coins, by reselling it to exchanges/crypto whales interested in holding thousands of pi coins before the mainnet launch.
Who is a pi merchant?
A pi merchant is someone who buys pi coins from miners and resell to these crypto whales and holders of pi..
This is because pi network is not doing any pre-sale. The only way exchanges can get pi is by buying from miners and pi merchants stands in between the miners and the exchanges.
How can I sell my pi coins?
Selling pi coins is really easy, but first you need to migrate to mainnet wallet before you can do that. I will leave the telegram contact of my personal pi merchant to trade with.
Tele-gram.
@Pi_vendor_247
Empowering the Unbanked: The Vital Role of NBFCs in Promoting Financial Inclu...Vighnesh Shashtri
In India, financial inclusion remains a critical challenge, with a significant portion of the population still unbanked. Non-Banking Financial Companies (NBFCs) have emerged as key players in bridging this gap by providing financial services to those often overlooked by traditional banking institutions. This article delves into how NBFCs are fostering financial inclusion and empowering the unbanked.
how to sell pi coins in South Korea profitably.DOT TECH
Yes. You can sell your pi network coins in South Korea or any other country, by finding a verified pi merchant
What is a verified pi merchant?
Since pi network is not launched yet on any exchange, the only way you can sell pi coins is by selling to a verified pi merchant, and this is because pi network is not launched yet on any exchange and no pre-sale or ico offerings Is done on pi.
Since there is no pre-sale, the only way exchanges can get pi is by buying from miners. So a pi merchant facilitates these transactions by acting as a bridge for both transactions.
How can i find a pi vendor/merchant?
Well for those who haven't traded with a pi merchant or who don't already have one. I will leave the telegram id of my personal pi merchant who i trade pi with.
Tele gram: @Pi_vendor_247
#pi #sell #nigeria #pinetwork #picoins #sellpi #Nigerian #tradepi #pinetworkcoins #sellmypi
US Economic Outlook - Being Decided - M Capital Group August 2021.pdfpchutichetpong
The U.S. economy is continuing its impressive recovery from the COVID-19 pandemic and not slowing down despite re-occurring bumps. The U.S. savings rate reached its highest ever recorded level at 34% in April 2020 and Americans seem ready to spend. The sectors that had been hurt the most by the pandemic specifically reduced consumer spending, like retail, leisure, hospitality, and travel, are now experiencing massive growth in revenue and job openings.
Could this growth lead to a “Roaring Twenties”? As quickly as the U.S. economy contracted, experiencing a 9.1% drop in economic output relative to the business cycle in Q2 2020, the largest in recorded history, it has rebounded beyond expectations. This surprising growth seems to be fueled by the U.S. government’s aggressive fiscal and monetary policies, and an increase in consumer spending as mobility restrictions are lifted. Unemployment rates between June 2020 and June 2021 decreased by 5.2%, while the demand for labor is increasing, coupled with increasing wages to incentivize Americans to rejoin the labor force. Schools and businesses are expected to fully reopen soon. In parallel, vaccination rates across the country and the world continue to rise, with full vaccination rates of 50% and 14.8% respectively.
However, it is not completely smooth sailing from here. According to M Capital Group, the main risks that threaten the continued growth of the U.S. economy are inflation, unsettled trade relations, and another wave of Covid-19 mutations that could shut down the world again. Have we learned from the past year of COVID-19 and adapted our economy accordingly?
“In order for the U.S. economy to continue growing, whether there is another wave or not, the U.S. needs to focus on diversifying supply chains, supporting business investment, and maintaining consumer spending,” says Grace Feeley, a research analyst at M Capital Group.
While the economic indicators are positive, the risks are coming closer to manifesting and threatening such growth. The new variants spreading throughout the world, Delta, Lambda, and Gamma, are vaccine-resistant and muddy the predictions made about the economy and health of the country. These variants bring back the feeling of uncertainty that has wreaked havoc not only on the stock market but the mindset of people around the world. MCG provides unique insight on how to mitigate these risks to possibly ensure a bright economic future.
how to sell pi coins in all Africa Countries.DOT TECH
Yes. You can sell your pi network for other cryptocurrencies like Bitcoin, usdt , Ethereum and other currencies And this is done easily with the help from a pi merchant.
What is a pi merchant ?
Since pi is not launched yet in any exchange. The only way you can sell right now is through merchants.
A verified Pi merchant is someone who buys pi network coins from miners and resell them to investors looking forward to hold massive quantities of pi coins before mainnet launch in 2026.
I will leave the telegram contact of my personal pi merchant to trade with.
@Pi_vendor_247
when will pi network coin be available on crypto exchange.DOT TECH
There is no set date for when Pi coins will enter the market.
However, the developers are working hard to get them released as soon as possible.
Once they are available, users will be able to exchange other cryptocurrencies for Pi coins on designated exchanges.
But for now the only way to sell your pi coins is through verified pi vendor.
Here is the telegram contact of my personal pi vendor
@Pi_vendor_247
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The European Unemployment Puzzle: implications from population agingGRAPE
We study the link between the evolving age structure of the working population and unemployment. We build a large new Keynesian OLG model with a realistic age structure, labor market frictions, sticky prices, and aggregate shocks. Once calibrated to the European economy, we quantify the extent to which demographic changes over the last three decades have contributed to the decline of the unemployment rate. Our findings yield important implications for the future evolution of unemployment given the anticipated further aging of the working population in Europe. We also quantify the implications for optimal monetary policy: lowering inflation volatility becomes less costly in terms of GDP and unemployment volatility, which hints that optimal monetary policy may be more hawkish in an aging society. Finally, our results also propose a partial reversal of the European-US unemployment puzzle due to the fact that the share of young workers is expected to remain robust in the US.
Introduction to Indian Financial System ()Avanish Goel
The financial system of a country is an important tool for economic development of the country, as it helps in creation of wealth by linking savings with investments.
It facilitates the flow of funds form the households (savers) to business firms (investors) to aid in wealth creation and development of both the parties
how can I sell pi coins after successfully completing KYCDOT TECH
Pi coins is not launched yet in any exchange 💱 this means it's not swappable, the current pi displaying on coin market cap is the iou version of pi. And you can learn all about that on my previous post.
RIGHT NOW THE ONLY WAY you can sell pi coins is through verified pi merchants. A pi merchant is someone who buys pi coins and resell them to exchanges and crypto whales. Looking forward to hold massive quantities of pi coins before the mainnet launch.
This is because pi network is not doing any pre-sale or ico offerings, the only way to get my coins is from buying from miners. So a merchant facilitates the transactions between the miners and these exchanges holding pi.
I and my friends has sold more than 6000 pi coins successfully with this method. I will be happy to share the contact of my personal pi merchant. The one i trade with, if you have your own merchant you can trade with them. For those who are new.
Message: @Pi_vendor_247 on telegram.
I wouldn't advise you selling all percentage of the pi coins. Leave at least a before so its a win win during open mainnet. Have a nice day pioneers ♥️
#kyc #mainnet #picoins #pi #sellpi #piwallet
#pinetwork
how to sell pi coins at high rate quickly.DOT TECH
Where can I sell my pi coins at a high rate.
Pi is not launched yet on any exchange. But one can easily sell his or her pi coins to investors who want to hold pi till mainnet launch.
This means crypto whales want to hold pi. And you can get a good rate for selling pi to them. I will leave the telegram contact of my personal pi vendor below.
A vendor is someone who buys from a miner and resell it to a holder or crypto whale.
Here is the telegram contact of my vendor:
@Pi_vendor_247
how can I sell my pi coins for cash in a pi APPDOT TECH
You can't sell your pi coins in the pi network app. because it is not listed yet on any exchange.
The only way you can sell is by trading your pi coins with an investor (a person looking forward to hold massive amounts of pi coins before mainnet launch) .
You don't need to meet the investor directly all the trades are done with a pi vendor/merchant (a person that buys the pi coins from miners and resell it to investors)
I Will leave The telegram contact of my personal pi vendor, if you are finding a legitimate one.
@Pi_vendor_247
#pi network
#pi coins
#money
3. Presented by
Farhana Shafique (1336-10)
Rafia Tufail (1327-10)
Sumrah Shakeel (1339-10)
Iqra Khalid (1407-10)
M.Sultan Bhatti (1319-10)
M.Zeshan Sarwar (1455-10)
M.Tariq Saleem (1328-10)
Presented to:
Prof. Naeem Amjad
4. What is lending? What are the main
sectors of lending?
Lending:
Grant to (someone) the use of (something) on the
understanding that it shall be returned
Allow (a person or organization) the use of (a sum of money)
under an agreement to pay it back later, typically with interest
5. Strategic Objectives of SBP
1- Broadening Access of Financial Services
2- Ensuring Soundness of the Financial
Sector
3- Maintaining Price Stability with Growth
4- Exchange and Reserve Management
5- Strengthening of Payment Systems
6. Broadening Access of Financial Services
Overview
SBP in confluence with other stakeholders (government and the
banking sector) for financial broadening.
Small & Medium Enterprises & Micro Finance, Islamic banking,
Housing & Infrastructure financing and agriculture credit were
the main areas of focus in its development finance paradigm.
7. SME Finance
Growth engines of any economy due to their ability to create
jobs, foster entrepreneurship and to provide depth to the
industrial base of the economy
3.2 million business enterprises1 in Pakistan, and SMEs
constitute over 99 percent of the aggregate
In retail trade, wholesale, restaurants and hotel business SME
activity is 53%
industrial establishments 20%
service provision 22%
8. Contribution of SMEs (defined on the basis of
number of employees)
Over 30 percent to GDP
25 percent in export earnings
35 percent in manufacturing value addition
9. Range of SMEs Loan
According to a market study conducted by
consultants from Bank academia
30.7 percent of SMEs do not have a bank account at all
85 percent do not take any loan from banks
50.5 percent consider it very difficult to get loans from a bank
10. SBP’s Initiatives for Growth of SME
Finance
Issuance of Separate Prudential Regulations for the SMEs, which
allow banks/DFIs lending to SMEs with a clean lending limit of
Rs.3 million
SME Finance via Downscaling Approach
The downscaling approach is designed to provide existing
commercial banks with the technical know-how they need in
order to be able to disburse loans to very small and SMEs.
11. Performance of Micro Finance Banks
After the Year 2000-01 the formal financial sector was opened to
Microfinance Banks (MFBs).
The policy allowed institutional diversity as both regulated and
non-regulated institutions were allowed to cater to financial
services needs of the poor.
Recently, SBP developed a strategy for expanding Microfinance
outreach, approved by the Prime Minister of Pakistan.
This strategy provides Roadmap for expanding outreach from
existing one million to three million borrowers by Year 2010.
12. Export Finance Regime
Major avenue for meeting the funding requirements of exporters.
Commodity-Wise Position
Highest amount (Rs.219.823 billion) was disbursed to the textile
sector.
13. Ensuring Soundness of the Financial
Sector
Undertaken to Strengthen the Banking
System Stability
Prescribes significant up-gradation of risk management
standards and technological advancement within banks
SBP has taken a number of initiatives and issued a roadmap for
implementation of Basel-II to ensure smooth transition to the
new regime
Note:
Basel-II Capital Accord provides a comprehensive and more
risk sensitive capital allocation
methodology
14. Maintaining Price Stability with Growth
Most desirable pre-requisite for growth and has become the
primary objective of central banks in industrialized as well as in
developing countries since 1990s
Avoidance of high and volatile rate of inflation
SBP tightened monetary conditions first by raising the Cash
Reserve Requirement (CRR) and Statutory Liquidity
Requirement (SLR) ratios
Open market operations and pro-active liquidity management
strategy
15. Exchange Rate & Reserve Management
Foreign Exchange Market in the country continued to grow both
in terms of capacity and volumes, thus making a valuable
contribution to the overall economic objectives of the country
On the SBP’s FX Reserve Management front, although foreign
exchange outflows including support for oil / commodities and
debt amounted to USD 10.9 billion, it were more than off-set by
healthy inflows of USD 13.4 billion on account of FDI,
Privatization Proceeds, Bond Issuance, Remittances and Market
Purchases
16. Strengthening of Payment Systems
Payment Systems and Electronic Funds Transfer
Real-Time Gross Settlement System
Society for Worldwide Inter-bank Financial Telecommunication
(SWIFT)
Management of ATM Cash and Downtime
Utility Bills Payment through ATMs
Performance of Retail Payment Systems
E-banking Infrastructure
Clearing of Paper Based Instruments
17. Types of Lending
Fund Based (Current and fixed assets)
Non-Fund Based ( Fee based)
Others
18. Types of Lending
Fund Based Others
Overdraft Lease Finance
Cash Credits Non-Fund Based Hire-Purchase
Bill Finance Issue of Guarantees Finance
Issue of LC Mortgage Loan
Demand Loan
Deferred Payment Running finance
Term Loans
Guarantee Retail Loan
Closed-Ended
Open-Ended Loans Business Loan
Loans Corporate Finance
Consumer Finance
Project
finance
19. What is Fund Based Lending?
Introduction:
A Fund-based loan is a loan, often for a short
term, secured by a company's assets
In case of fund based lending bank commits the physical
outflow of funds. As such, the funds position of the lending
bank gets affected. The fund based lending can be made by
the banks in the following forms…
20. Overdraft
A facility provided by the bank to its client, that he can withdraw
a limited amount from the bank in excess of his original balance
Features:
Current Account
Application
Credit Analysis
Short Term
Interest
Securities
Guarantee
21. Cash Credit
A common form of advancing loan in all banks
It grants against:-
Personal Security
Guarantee
Clean Cash Secure Cash
Finance Finance
22. Features of Cash Credit
Separate Account
Securities
Pledge
Term of Finance
Interest
23. Bill Finance
Bankers purchase and discount Bills of Exchange and so provide
loan.
Credit the consumer account with the amount of the bill after
deducting discount charges.
Features:
Account
Income
Customer
Margin
Bills
24. Demand Loan
Demand loans are short term loans (typically no more than
180 days)
Not have fixed dates for repayment
Carry a floating interest rate which varies according to the
prime rate.
Can be "called" for repayment by the lending institution at
any time
Demand loans may be unsecured or secured.
25. Term Loan
A loan from a bank for a specific amount that has a
specified repayment schedule and a floating interest rate.
Term loans almost always mature between one and 10
years.
Short term ( less than 1 )
Medium Term ( 1 to 5 )
Long Term ( more than 5)
26. Close Ended Loan
Cannot be borrowed once they’ve been repaid
Make payments on closed-ended loans, the balance of the
loan goes down
Don’t have any available credit, can use on closed-ended
loans
Need to borrow more money, would have to apply for
another loan
Common types of closed-ended loans include mortgage
loans, auto loans, and student loans.
27. What is Non-Fund Based Lending?
Introduction:
non fund based lending, the lending bank does not
commit any physical outflow of funds. As such, the funds
position of the lending bank remains intact. The non fund
based lending can be made by the banks in two forms.
It has two further kinds:-
Issuance of Guarantee
Issuance of LC
28. Issuance of Guarantee
A loan which is granted on the basis of guarantee given by
the third reliable party.
Loan can be provided without guarantee if the party is
highly reputable.
In case of default of the party, the guarantor will be liable to
the bank
29. Issuance of LC
A letter of credit is a promise to pay
Banks issue letters of credit as a way to ensure sellers that they
will get paid as long as they do what they've agreed to do
Four parties that may involve in the process of letter of credit. A
customer, issuing bank, third party(beneficiary),paying bank
Issuing bank reserves the right to cancel the LC at any time and
the bank will be under no obligation to give a notice of
cancellation to the beneficiary
31. Open Ended Loan
Loans that you can borrow over and over.
Credit cards and lines of credit are the most common types
of open-ended loans
With both of these loans, you have a credit limit that you
can purchase against
Each time you make a purchase, your available credit
decreases
As you make payments, your available increases allowing
you to use the same credit over and over.
32. What are other modes of Lending?
Lease Finance
Hire-Purchase Finance
Mortgage Loan
Running Finance
Business Loan
Retail finance
Corporate Finance
Consumer Finance
Project Finance
33. What are other modes of Lending?
Bad credit loans
A bad credit loan usually refers to a loan offered to a borrower
who has a history of poor credit, and can be difficult to obtain
at affordable rates
Debt Consolidation loans
Combine your existing debts into one debt consolidation
loan, and you may significantly lower your monthly
repayments and reduce the total cost
34. Bank Lending
Some areas or fields in a country depending on its
economic condition or government interest are prioritized
and are called priority sectors i.e. industry, agriculture.
these may further be sub divided
Banks are directed by the state bank of the country that
loans must be given on reduced interest rates with
discounts to promote these fields.
35. Latest criteria of Lending
Agriculture sector gets only 4.9 per cent share of the total
loans lent by the banks
Corporate sector gains 63.5 per cent
Bank’s staff gets 2.3 per cent
Consumer financing attains 8 per cent
SME gets 9.9 per cent.
36. Bank Lending Sectors
Agriculture
Small Scale Industries
Small Road and Water Transport Operators
Retail Trade
Small Business
Professional and Self-employed persons
Education
Housing Finance
37. Agriculture Sector
The role of agriculture in Pakistan economy is of pivotal
nature
Due to diverse geographical and climatic conditions the
country has tremendous potential for growth and
development in agriculture
Adequate and timely financial assistance to the farmers
will improve production potential of agriculture sector in
the country.
38. Agriculture Sector
Banks authorized to provide agriculture credit to
farmers.
SBP does not restrain any bank from providing agricultural credit.
However, under the Agricultural Credit Scheme indicative targets
are given to 21 banks on annual basis.
These include; two specialized banks five major commercial banks and
14 domestic private commercial banks
39. Conditions for obtaining Agri. Loan
Application
Genuine Farmer/Tenant
Holder of a NIC
Not a defaulter of any Bank Financial Institution
Applicant must produce proper securities /
sureties or other collaterals acceptable to the banks
40. If one brother was declared defaulter, do
the banks provide loan to other brothers?
Every individual could be separately considered for grant of
loans if he had credit worthiness and separate landed
property
41. Purposes of Agriculture Credit
Complete value chain of activities such as production/crop
loans i.e. in-puts (seed, fertilizer, & pesticides etc.)
Development loans (tractors &tube wells, agricultural
machinery / equipments / implements etc.)
Corporate farming
Marketing
Cold storage (godowns) on farm & off farm, silos,
processing of crops (other than major crops), fruits &
vegetables, grading, polishing, packing, transportation and
exports of agricultural goods etc
42. Why the mark-up rate of Agricultural Credit
is higher than the mark-up rate of
Commercial/Industrial Credit?
In the post financial sector reforms era, banks’ markup
rates are not fixed for different sectors
Based on their cost structure and risk profile of the
borrowers and the sector
Required to use KIBOR as a bench mark for determining
pricing of their loans
43. Is there any limit for agriculture financing?
No, there is no limit on agricultural loans
Loan limit amount is assessed by the ACO/branch manager
on the basis of financing appraisal or feasibility report etc
44. Is there any system/procedure under
which farmers can get agricultural loans
at their doorsteps?
Mobile Credit Officers (MCOs) and Agricultural Credit
Officers of banks are visiting the farmers regularly to
ascertain the credit needs of the farmers and ensure its
availability at their doorsteps and also provide technical
help for different crops.
45. Education Sector
Though 62 years have been passed and 23 policies and action
plans have been introduced yet the educational sector is waiting
for an arrival of a savior
the allocation of funds for education are very low. It is only 1.5 to
2.0 percent of the total GDP
It should be around 7% of the total GDP
46. Industrial Sectors
IT Industry:
Pakistan’s IT industry has been rising steadily since the last three years.
The total number of IT companies increased to 1306 and the total
estimated size of IT industry is $2.8 billion
In 2007, Pakistan was for the first time featured in the Global Services
Location Index by A.T. Kearney and was rated as the 30th best location
for offshoring
By 2009, Pakistan had improved its rank by ten places to reach 20th.
47. Industrial Sectors Cont’d
Textiles
3% of United States imports regarding
clothing and other form of textiles is
covered by Pakistan
Textile exports in 1999 were $5.2 billion and rose to
become $10.5 billion by 2007.
Textile exports managed to increase at a very decent
growth of 16% in 2006.
48. Industrial Sectors Cont’d
Mining
Based on available information, the country's
more than 6,00,000 km² of outcrops area
demonstrates varied geological potential for metallic and
non-metallic mineral deposits.
The discovery of coal deposits having over 175 billion tones
of reserves at That in the Sindh province has given an
impetus to develop it as an alternate source of energy.
Currently about 52 minerals are under exploitation
although on small scale.
The current contribution of the mineral sector to the GDB
is about 0.5%
49. Industrial Sectors Cont’d
SME:
In Pakistan SMEs have a significant
contribution in the total GDP of Pakistan,
according to SMEDA and Economic survey reports,
the share in the annual GDP is 40%
Small and medium scale firms represent nearly 90% of
all the enterprises in Pakistan and employ 80% of the
non-agricultural labor force.
50. Industrial Sectors Cont’d
Automobile industry
Pakistan is an emerging market for automobiles
and automotive parts offers immense business
and investment opportunities.
The total contribution of Auto industry to GDP in 2007 is
2.8% which is likely to increase up to 5.6% in the next 5
years.
Auto sector presently, contributes 16% to the
manufacturing sector which also is expected to increase
25% in the next 7 years
Car ownership in Pakistan has risen by 40% per annum
since 2001
51. Industrial Sectors Cont’d
CNG industry
As of 2010, Pakistan is one of the largest
users of CNG (compressed natural gas)
in the world.
It has provided employment to over 50,000 people in
Pakistan
Presently, more than 3,000 CNG stations are operating
in the country in 99 cities and towns, and 1000 more
would be set up in the next two years.
52. Industrial Sectors Cont’d
Cement industry
In 1947, Pakistan had inherited four cement
plants with a total capacity of 0.5 million
tons
Some expansion took place in 1956–66 but could not keep
pace with the economic development and the country had
to resort to imports of cement in 1976-77 and continued to
do so till 1994-95.
The cement sector consisting of 27 plants is contributing
above Rs. 30 billion to the national exchequer in the form
of taxes
53. Procedure of lending
Activities Covered in the Bank Loans Policy Procedure
Assessing Capital Requirements
Preparing the Loan Application
Applying for the Loan
Closing the Loan
Loan Service and Reporting
Loan Analysis
Forms Included in the Bank Loans Policy Procedure
Loan Application Checklist Form
54. Advantages of Bank Lending
Competitive Interest rates(as compared to unconventional
lenders)
Easy availability(because of bank’s profit and depositors of
the bank)
No need to specify use of the money(in case of personal
loans)
Speed(within one hour if appropriate documents are
available)
Credit(businesses using bank loans increase
Their stability and credit score)
55. Advantages Cont’d
Growth(in size of business and more profits)
Uses(can be used in various dimensions)
No need for collateral(in case of personal loans)
Good lending terms and relations with the bank(bank
facilitates is lending criteria is met properly)
56. Disadvantages of Bank Lending
Borrowers over-borrow(loans should be according to
repayment capacity)
Prepayment penalty(payment of loan before the stipulated
date, charges penalty)
Restrictions(good credit history and about the use of debt)
Cash flow(decreasing cash flow due to too much
borrowing)
Possible Delay In Getting the Loan(busy personnel and
inappropriate documentation)
Not Everyone Qualifies for a Bank Loan(good credit score
required)
57. Disadvantages Cont’d
Entire amount not granted(usually 70 or 80% granted)
Inflexible( usually in payment terms)
Security(lose of security in case of defaults)
58. STATE BANK OF PAKISTAN
CENTRAL BANK OF PAKISTAN
30 July , 2011
National Data Summary Page
Real Sector Fiscal Sector Financial Sector External Sector Population
Observations
Data Category Unit Period of Previous Links at Source
Latest data
latest data data
Real Sector
National Accounts
Gross Domestic
Product (Current Million Rs. FY11 18,062,901 14,836,536 FBS
Prices)
Agriculture Million Rs. FY11 3,698,658 2,978,950
Crops Million Rs. FY11 1,788,676 1,344,994
Livestock Million Rs. FY11 1,802,221 1,533,716
Fishing Million Rs. FY11 61,403 60,347
Forestry Million Rs. FY11 46,358 39,893
59. Industry Million Rs. FY11 4,323,057 3,577,659
Manufacturing Million Rs. FY11 3,167,947 2,487,069
Mining and Quarrying Million Rs. FY11 431,907 371,233
Construction Million Rs. FY11 396,777 352,530
Electricity & Gas
Million Rs. FY11 326,426 366,827
Distribution
Services Million Rs. FY11 9,085,772 7,509,906
Wholesale & Retail Trade Million Rs. FY11 3,115,906 2,464,342
Transport Storage &
Million Rs. FY11 2,132,844 1,846,735
Communication
Finance and Insurance Million Rs. FY11 649,701 616,116
Ownership of Dwellings Million Rs. FY11 401,687 345,555
Public Administration &
Million Rs. FY11 975,296 757,140
Defence
Community, Social &
Million Rs. FY11 1,810,338 1,480,018
Personal Services
60. Gross Domestic
Product (Constant Million Rs. FY11 5,817,406 5,681,531 FBS
Prices)-1
Agriculture Million Rs. FY11 1,216,523 1,201,945
Crops Million Rs. FY11 509,393 519,132
Livestock Million Rs. FY11 670,743 646,783
Fishing Million Rs. FY11 22,041 21,626
Forestry Million Rs. FY11 14,346 14,404
Industry Million Rs. FY11 1,499,360 1,500,345
Manufacturing Million Rs. FY11 1,085,440 1,054,276
Mining and Quarrying Million Rs. FY11 140,971 140,378
Construction Million Rs. FY11 146,169 144,985
Electricity & Gas
Million Rs. FY11 126,780 160,706
Distribution
Services Million Rs. FY11 3,101,523 2,979,241
Wholesale & Retail
Million Rs. FY11 1,000,477 963,368
Trade
Transport Storage &
Million Rs. FY11 581,388 574,101
Communication
Finance and Insurance Million Rs. FY11 260,172 277,555
Ownership of Dwellings Million Rs. FY11 158,707 155,916
Public Administration &
Million Rs. FY11 385,506 340,508
Defence
Community, Social &
Million Rs. FY11 715,273 667,793
Personal Services