Banking System of Pakistan

Definition of Bank
An institution that deals in money and its
substitute and provide other financial
services. Bank accept deposit and give
loans and derived profit from reference in
the rate of interest paid and charged
responsibility.
 Banking Companies Ordinance 1962

“Banking means the accepting deposits from

the public for the purpose of landing or investment,
repayable on demand and with drawn able by
cheque, draft, order or otherwise”.

The definition given in the banking

companies ordinance 1962 can be simplified as:
“Banking companies means any company which
transact the banking in Pakistan”.
 History

Schedule bank offices.

Reducing of schedule bank offices after
partition of subcontinent.
Branches of commercial banks.
 Phases of Banking System
Phase I :- (1947 to 1974) Establishment of
commercial banks.
Phase II :- (1974 to 1979) Nationalization
of banks.
Phase III :- (1979 to 1991) Islamization
process.
Phase IV :- (1991 to till now) Privatization
of banks
 Phase I
Establishment of Commercial Banks

Initial condition of bank.

Creation of national banking system.
 Phase II
Nationalization of Banks

Government nationalize the banks.

Objective of nationalization.
1. Raise the capital
2. Merge the banks
3. Bank credit
 Phase III
Islamization

Interest on loan.
Council of Islamic ideology.
Interest free Islamic system.
Concept of PLS account.
 Phase IV
Privatization of Banks

Performance of nationalize bank.

Privatization commission.
Privatization of MCB and ABL.
Privatization of UBL and HBL.
New schedule bank.
New private bank.
 Types and Functions of Banks
State bank of Pakistan
Industrial bank of Pakistan
ZTBL
Commercial bank
1. United Bank Limited
 United Bank Limited

History
Branches
Overseas branches
Functions of United Bank

Consumer banking
Commercial banking
Corporate banking
Investment banking
Credit rating
Cash line
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 Continue…..
UBL drive
1. New car financing
2. Used car financing
3. Cash your car
UBL address