banking

2. Privatization is the process of involving
the private sector in the ownership of
state owned enterprises.
In the words of chris cook:
privatization means selling of
nationalized industries of the public
sector or private business & individuals.

3.  Bank nationalization Act 1974 was
amended in 1990 which empower the
government of Pakistan to privatize the
nationalized banks.
 Bank nationalization Acct 1974 was
future amended on 20th january1991 to
empower the state bank of Pakistan to
issue license for the opening of new
banks in private sector.

4. The bank nationalization act 1974
amended on 20 January
1991.empowered the state bank of
pakistan to issue the licenses for the
establishment of new commercial banks in
private sectors .

5.  The proposed bank must be a public ltd
company .
 Bank must be listed on stock exchange of
the country.
 At least 20% of shares must be offered to
general public.
 Bank must have a minimum capital of two
billion.
 The directors of the bank will not be
allowed loans for themselves

6.  Bank will play an effective role in
mobilization of savings.
 Bank will have to abide by the
instructions of the State Bank of
Pakistan.
 Bank will concentrate their branch
network in urban areas.
 Bank will provide quick & efficient services
to the customers.

7.  Better standard of services
 Promote healthy competition
 Improvement in performance
 Quick decisions
 Development of capital market
 Increase in deposits
 Security of loans
 Releasing political pressure

8.  Improvement in performance
 Better standard of services
 Decrease in expenses
 Increase in deposits
 Secured loans
 Decrease in defaulted loans
 Reasonable profit
 Productive loans
 Quick decisions
 Economic development

9.  Neglecting small industries
 Neglecting agriculture sector
 Lack of co-operation
 Misuse of loans
 Profit motive
 Malpractices
 Unhealthy competition
 Control of big capitalist
 Protection of black money
 Concentration of wealth in few hands

10.  In early years of history of Pakistan the
banks were going well …
 But it was felt that the banks do not
provide the funds towards the mostly
needed sector of economic.
 keeping this situation the banking
business in Pakistan was nationalized on
1st January 1974,under bank
nationalization act 1974.

11. i. National bank of Pakistan(NBP)
ii. Habib bank limited(HBL)
iii. United bank limited(UBL)
iv. Muslim commercial bank(MCB)
v. Allied bank limited(ABL)

12.  Credit for agriculture sector
 Controlling unproductive expenditures
 Professional management
 Credit for small enterprises

13.  Control of big capitalists
 Neglecting small industries
 Neglecting agriculture sector
 Lack of co-operation
 Misuse of loans
 Malpractices
 Unhealthy competition
 Protection of black money
 Profit motives
 Overseas branches

14.  Fair distribution of credit
 Financing agriculture sector
 Facility for underdeveloped areas
 Control non-development expenditure
 Control of malpractices
 Security of depositors
 Security of advances
 Price stability
 Uniform policy

15.  Low efficiency of bank employees
 Poor service standard
 Political interference
 Favoritism
 Rise in price
 Unhealthy distribution of credit
 Increase in expenses
 Poor recovery of loan
 Decrease in profit
 Low competition