Financial Instit in Pakistan

8/3/2019 Financial Instit in Pakistan

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FINANCIAL INSTITUTIONS

IN

PAKISTAN

1FINANCIAL INSTITUTIONS IN PAKISTAN



Finance

•Money used by a company, provided by

shareholders or by Loans.

•Money resources of state, company or person.

•The provision of Money when and where

required.

•The art and science of managing money.




FINANCIAL INSTITUTIONS IN PAKISTAN 3

What is Market?

It is an institution through which buyers and

sellers meet to exchange goods, services, andproductive resources.

Types of MarketsThere are essentially three types of markets

within the global economic system.

1-The factor markets allocate factors of production (land, labor, skills, capital) and

distribute income (wages, rent) to the owners of

productive resources.



2-Consuming units use most of their income

from factor markets to purchase goods and

services in the product markets.

3-The financial markets channel savings to

those individuals and institutions needing morefunds for spending than are provided by their

current incomes.




Financial Asset

A claim against the income or wealth of abusiness firm, household, or unit of government

usually represented by a certificate, receipt,

computer record file, or other legal document,and usually created by or related to the lending

of money.




How Financial Assets Are Born

To acquire assets, households and businessfirms may use current income and

accumulated savings – internal financing.

An economic unit may also raise funds by

issuing financial liabilities (debt) or stock

(equities), provided that a buyer can be found – external financing.




What is Money?

All financial assets are valued in terms of money, and flows of funds between lenders

and borrowers occur through the medium of

money.

Money itself is a financial asset, because all

forms of money in use today are claimsagainst some public or private institution.




The Functions of Money

Money serves as a standard of value (or unit of

account ) for all goods and services.

Money serves as a medium of exchange, such

that buyers and sellers no longer need to havean exact coincidence of wants in terms of

quality, quantity, time, and location.

Money serves as a store of value – a reserve of

future purchasing power. However, the value

of money can experience marked fluctuations.8FINANCIAL INSTITUTIONS IN PAKISTAN



Money functions as the only perfectly liquid

asset in the financial system. It exhibits price

stability, ready marketability, and reversibility.

Different Kinds of Financial Assets

Accepted in payment for purchases of goods

and services is money. Currency and checking

accounts are forms of money. 9FINANCIAL INSTITUTIONS IN PAKISTAN



Equities represent ownership shares in a

business firm and are claims against the firm’s

profits and against proceeds from the sale of its assets. Common stock and preferred stock

are equities.

Debt securities entitle their holders to apriority claim over the holders of equities tothe assets and income of an economic unit.They can be negotiable or nonnegotiable.Examples include bonds, notes, accountspayable, and savings deposits.




Derivatives have a market value that is tied toor influenced by the value or return on afinancial asset. Examples include futurescontracts, options, and swaps.

FINANCIAL MARKETS FOR INVESTORS




What is investment ?

Why invest ?

Where invest ?An Introduction to Financial Market

Types of Financial Market

What is Investment ?

Money we earn is partly spent and rest saved for

meeting future expenses. Instead of keeping thesavings idle we like to use savings in order to

get return on it in the future. This is called

Investment. 12FINANCIAL INSTITUTIONS IN PAKISTAN



Why Invest ?

Earn Return on idle resources

Generate sum of money for specified goal inlife

Make provision for uncertain future

To meet the cost of inflation. An Introduction to Financial Market

In economics, a financial market is a mechanism

that allows people to easily buy & sell (trade)financial securities (such as stocks & bonds etc

), commodities (such as precious metals or

agricultural goods etc). 13FINANCIAL INSTITUTIONS IN PAKISTAN



Types of Financial Market

Financial Market

Capitalmarket

Commodity Market

Money Market

DerivativesMarket

InsuranceMarket

ForeignExchange

Market




Options for Retail Investor

Equity

DebtMutual Funds

Fixed Deposits with Banks

National Saving SchemesGold

Real Estate

Insurance

Commodity Foreign Exchange etc




Equity Shares

• It commonly referred to as ordinary share

represents the form of fractional ownership ina business venture.

•

Equity shareholders have the right to getdividends as declared.

DEBT•

This instrument represents contract whereby oneparty lend money to another on pre-determined

terms with regards to rate and periodicity of interest,

repayment of principle amount by the borrower to

the lender.For exam le: COD, Bonds, TFC etc 16FINANCIAL INSTITUTIONS IN PAKISTAN



Mutual Fund

A Mutual fund is a collective investment

vehicle that pools together investor money.This collective pool of money is invested in

accordance to stated objective.

Mutual Funds are :

A large pool of resources

Managed by professionalsDiversified investment for lower risk & better

return




Fixed Deposits with Banks

It allows an investor to deposit a lump sum of

money for a fixed period ranging from a fewweeks to a few year and earn a pre-determined

rate of interest.

Guaranteed Returns depends upon term.Safe and Secured Investments

National Savings Schemes• National Savings Certificate

• National Savings Deposits




GOLDPhysical Gold in the form of bars and coins

Gold accounts in banks where units in the gold a/c in

the banks are backed up by physical gold held in the

bank and bank gives assurance that the investor can

convert the gold back to cash anytime.

Real Estate InvestmentFinancial instrument that invests primarily in the real

estate such as offices, apartments, shopping centres,

hotels etc.Tend to pay high returns( often as high as 10%)

Attractive investment opportunity when the stock

market is falling.




Insurance

A promise of compensation for specific

potential future losses in exchange for aperiodic payment. Now it is considered as a

investment tool also:

Traditional PlansCommodity

• Investment in sugar, cotton, rice, fertilizers,

wheat etcForeign Exchange

Investment in foreign currencies




Conclusion

Investors looks at superior returns and measuredrisk therefore he has to select a dynamically

balanced asset allocation mix consisting of the

different investment options available in theFinancial Market.




Financial Institutions

Financial institutions permit the flow of fundsbetween borrowers and lenders by facilitating

financial transactions

Institutions may be categorised by differences

in the sources and uses of funds


C i f i i i i



Categories of Financial Institutions

Depository financial institutionsInvestment banks and merchant banks

(money market corporations)

Contractual savings institutionsFinance companies

Unit trust




Depository financial institutions

Attract savings from depositors and investors toprovide loan facilities to borrowers

Commercial banks

Building societiesCredit unions


Investment Banks and Merchant Banks



Investment Banks and Merchant Banks(money market corporations)

Mainly provide off-balance-sheet (OBS)transactions to corporations and government

Advice on mergers and acquisitions,

portfolio restructuring, finance and risk management

Provide some funding





FINANCIAL INSTITUTIONS IN PAKISTAN



FINANCIAL INSTITUTIONS IN PAKISTAN

PUBLIC SECTOR BANKS

FIRST WOMEN BANK LIMITEDTHE BANK OF KHYBER

NATIONAL BANK OF PAKISTAN

THE BANK OF PUNJAB

THE SINDH BANKTHE BANK OF SINDH

ISLAMIC BANKS

BANKISLAMI PAKISTAN LIMITED ALBARAKA BANK (PAKISTAN) LIMITEDBURJ ISLAMIC BANK LIMITEDMEEZAN BANK LIMITED

DUBAI ISLAMIC BANK PAKISTAN LIMITED 28FINANCIAL INSTITUTIONS IN PAKISTAN

PRIVATE BANKS



PRIVATE BANKS

SAMBA BANK LIMITED

JS BANK LIMITED

ALLIED BANK LIMITEDKASB BANK LIMITED

SUMMIT BANK LIMITED

MCB BANK LIMITED

ASKARI BANK LIMITEDMYBANK LIMITED

ATLAS BANK LIMITED

NIB BANK LIMITED

BANK ALFALAH LIMITED

SILK BANK LIMITED

BANK AL HABIB LIMITED

SONERI BANK LIMITED

THE ROYAL BANK OF SCOTLAND LIMITED

STANDARD CHARTERED BANK (PAKISTAN) LIMITED 29FINANCIAL INSTITUTIONS IN PAKISTAN

FAYSAL BANK LIMITED



FAYSAL BANK LIMITED

UNITED BANK LIMITED

HABIB BANK LIMITED

HABIB METROPOLITAN BANK LIMITED

FOREIGN BANKS

THE BANK OF TOKYO-MITSUBISHI UFJ LIMITED - PAKISTAN

OPERATIONSCITIBANK N.A. - PAKISTAN OPERATIONS

HSBC BANK MIDDLE EAST LIMITED – PAKISTAN

DEUTSCHE BANK AG - PAKISTAN OPERATIONS

BARCLAYS BANK PLC

OMAN INTERNATIONAL BANK S.A.O.G – PAKISTAN

OPERATIONS


DEVELOPMENT FINANCIAL INSTITUTIONS



DEVELOPMENT FINANCIAL INSTITUTIONS

HOUSE BUILDING FINANCE CORPORATION

PAKISTAN KUWAIT INVESTMENT COMPANY LIMITED

PAK BRUNEI INVESTMENT COMPANY LIMITEDPAK OMAN INVESTMENT COMPANY LIMITED

PAK IRAN JOINT INVESTMENT COMPANY

SAUDI PAK INDUSTRIAL & AGRICULTURAL INVESTMENT

COMPANY LIMITEDPAK LIBYA HOLDING COMPANY LIMITED

PAK-CHINA INVESTMENT COMPANY LIMITED

PAK BRUNEI INVESTMENT COMPANY LIMITED


SPECIALIZED BANKS



SPECIALIZED BANKS

INDUSTRIAL DEVELOPMENT BANK OF PAKISTAN

THE PUNJAB PROVINCIAL COOPERATIVE BANK LTD

SME BANK LIMITEDZARAI TARAQIATI BANK LIMITED

ARSLAAN BANK LIMITED

MICRO FINANCE BANKS / INSTITUTIONS

NRSP Micro Finance Bank Limited

The First Micro Finance Bank Limited

Khushali Bank Limited

Karakuram Bank

Network Micro Finance Bank

Pak Oman Micro Finance Bank

Rozgar Micro Finance Bank, Karachi

Tameer Microfinance Bank Limited


Pakistan Investment banks



Pakistan Investment banks

1. BMA Capital Management Limited

2. Invest Capital Investment Bank Limited

3. AMZ Securities

4. Orix Leasing (Pakistan) Limited5. Trust Investment Bank Limited

6. JS Investment Bank Limited

7. Atlas Investment Bank Limited

Discount and Guarantee Houses

1. First Credit & Discount Corp Limited

2. National Discounting Services Limited

3. Speedway Fordmetall (Pakistan) Limited

Pakistan Housing Finance Companies

1. Asian Housing Finance Limited

2. Citibank Housing Finance Company Limited

3. House Building Finance Corporation

4. International Housing Finance Limited 33FINANCIAL INSTITUTIONS IN PAKISTAN




http://www.pakistaneconomist.com/database2/pakbanks.asp



p p p p

http://www.viewsbuzz.com/list-of-all-banks-in-pakistan-commercial-national-investment-saving-

islamic-banks/


Financial Instit in Pakistan

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