State bank of Pakistan by Arsalan Sehro

1. State Bank Of Pakistan

2. WHAT IS Bank?

3. Definition
 It is Financial Institution Authorized by
Government to accept Deposits, pay interest
,Clear Checks, make loans and provides
Financial Services to Customers

4. Types Of Bank
 National Bank
 Islamic Bank
 Industrial Bank
 Agricultural Bank
 Commercial Bank
 Central Bank

5.  A central bank is an independent national authority that
conducts monetary policy, regulates banks, and provides
financial services including economic research. Its goals
are to stabilize the nation's currency, keep unemployment
low and prevent inflation.

6. INTRODUCTION
 The State Bank of Pakistan (SBP) (Urdu: ‫بینک‬
‫پاکستان‬ ‫دولت‬ )is the central bank of Pakistan.It
Came into existence of -July-1st-1948.It performs
the development role in our country.
 The paid-up capital of state bank of Pakistan is
Rs.51shares were owned by federal Govt. and the
remaining 49%by the people .On Nationalization
on 1st jan,1974 its 100%shares were transferred to
the Federal Govt. and now its is complete a govt
organization.

7. Overview Of Organization
 The state bank of Pakistan is Non Profit making Organization..
 Its Main object is to manage or maintain the currency supply in country
 Increase and decrease in money supply can create inflation or deflation in
country.

8. IMPORTANCE
 To control credit.
 To issue Paper currency.
 To iron out economic crisis.
 To implement Monetary and financial Policies

10. Functions Of SBP
Note Issuing Agency
 State bank of Pakistan has monopoly in issuing currency notes. 5, 10, 50,
100 rupee notes are issued by the bank on 12 July 1976. Note of 500 rupee
was issued on 1st April 1986 and 1000 rupee note was issued on 18thJuly
1987. At present note of Rs.5000 is also issued by the state bank of
Pakistan. The state bank has three offices of issue, situated at Karachi,
Lahore and Peshawar.

11. Banker’s Bank
 All the commercial banks in Pakistan having paid up capital 5 or more then 5
million rupees maintain their cash reserve with the state bank of Pakistan.
They keep at least 3.5% balance of the total demand. The state bank acts as a
custodian of these cash reserves. The state bank settles these debts with the
daily clearing cheques. The state bank takes various measures to control the
commercial banks.

12. Banker To The Government

Federal and Provincial Governments cash balance are deposited with the
state bank. It controls foreign exchange reserves on behalf of the
government. It also floats new loans to the provincial government on behalf
of the government. So the state bank of Pakistan acts as a banker to the
government.

13. Lender Of Last Resort
 If any time commercial banks are short of cash reserve the SBP saves them
from this problem. The bank is the lender of the last resort. The SBP provides
cash to the commercial banks by re-discounting their bills. It saves the
commercial banks from solvency.

14. Conclusion
 state Bank of Pakistan is not a Profit Hunting Institution. Profit is its
secondary objective. Its Primary function is to stimulate economic growth of
the Country
 It reveals complete Transparency, &Prudence in Nations Economy.
 SO it clearly Justifies the Need &Importance of The State Bank of Pakistan