This document discusses the requirements and functions of commercial banks in Pakistan according to the Banking Companies Ordinance of 1962. It states that the State Bank of Pakistan regulates all commercial banks and issues banking licenses. To open a commercial bank, requirements around minimum capital, reserves, and accounts must be met. Core functions of commercial banks include accepting deposits, providing loans and advances, and performing cash transactions. The document also outlines the liquidation process for commercial banks, which is handled by the High Court of Pakistan.

1. HAILEY COLLEGE OF
COMMERCE
BANKING LAW AND PRACTICE
PROF DR. ASHFAQ AHMAD BHATTI

2. GROUP 1
FARIHA AMIN BSAT21-31 DIRECTOR
IQRA SALMAN BSAT21-22 DIRECTOR
FIZZA ARSHAD BSAT21-23 DIRECTOR
AQSA MAZHAR BSAT21-12 CEO
DUA MOHSIN ALI BSAT21-11 BANK MANAGER
FATIMA KHAN BSAT21-10

3. BANK NAME: HAILLIAN BANK

4. INTRODUCTION
State Bank of Pakistan (the central bank of the country) is the sole
supervisory and regulatory authority of Commercial Banks, Islamic
Commercial Banks, Development Financial Institutions (DFIs),
Micro Finance Banks and Exchange Companies in Pakistan. The
authorization/issuance of a commercial banking license has been
vested in State Bank of Pakistan (SBP) under Section 27 of the
Banking Companies Ordinance, 1962.

5. FOR OPENING OF A COMMERCIAL BANK
• Section 8: Use of the word “Bank” or any of its derivatives
• Section 13: Requirment as to minimum paid- up capital and
Reserve
• Section 27: Licensing of banking companies
• Section 29: Maintenance of liquid assets
• Section 34: Accounts and balance-sheet
• Section 35: Audit

6. FUNCTION OF COMMERCIAL BANK: SECTION 7
FOLLOWING FUNCTIONS WILL BE PERFUMED
(a) Primary functions . (b) Secondary functions
• Accepts deposit. • Discounting bills of exchange:
• Provides loan and advances • Overdraft facility
• Credit cash. •. Purchasing and selling of the securities
•. Locker facilities
• Paying and gathering the credit

7. LIQUIDITION / WINDING UP OF COMMERCIAL
BANK
Operations of a Banking Company may be suspended under this ordinance.
• High Court is the judicial forum for Winding up of Banking Company.
• High court may also stay proceedings against a Banking Company initiated by SBP
• Application may be submitted by SBP by High Court for Winding up of a Banking Company
• Restrictions on compromise or arrangement between banking companies and creditors.
Section 44: High Court defined
Section 50: Court Liquidator
Section 49: Winding up by High Court