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Banking Sector in Pakistan: An Overview

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Listed:
  • Asad Raza Abidi
  • Fayaz Raza Chandio
  • Hassan Jawad Soomro

Abstract

Bank is an institution transacting the business of accepting, for purpose of lending, of deposits of money from the public, repayable on demand otherwise, and withdraw able by cheque, draft order or otherwise and includes any post office saving bank. Banks are financial intermediaries. The role of a financial intermediary is to sell its own obligations with attractive features, at higher prices than paid to buy. Bank acquires some interest on selling its obligations and bears the same on buying. In 1974, all the existing banks were nationalized by the Government. The performance of nationalized banks deteriorated due to government protection to employees, resulting into the provision of inferior products and poor services. It also discouraged the private investors and foreign financial institutions. The poor performance of nationalized banks caused the reforms/privatization of banking sector in early 1990s. This study reflects an updated picture of Pakistani banking sector since its creation. It enables the readers, academician and bankers to have a look about banking developments in Pakistan as the journey from conventional banking to Islamic banking to enhance their understanding.

Suggested Citation

  • Asad Raza Abidi & Fayaz Raza Chandio & Hassan Jawad Soomro, 2014. "Banking Sector in Pakistan: An Overview," International Journal of Management Sciences, Research Academy of Social Sciences, vol. 3(10), pages 797-805.
    • Handle: RePEc:rss:jnljms:v3i10p5
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    References listed on IDEAS

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