National Bank of Pakistan

The Process of Deposit Mobilization

Prepared By: Muhammad Yasir

The Process of Deposit Mobilization
What is Deposit?
Deposit is a claim of customer over the bank on his account.

How Banks Mobilize Deposit?
Making Finances Investing in various financial markets

The Process of Deposit Mobilization
Purpose of Bank Financings/ Lendings:
Positive Return on Loan Provision of Working Capital Shifting of funds into Productive Hands Strengthening Industrializations Backbone of National Economy

Lending Products:
Running Finance Cash Finance Demand Finance Consumer Finance PAD

The Process of Deposit Mobilization
Investment in Financial Markets:
The investment functions are usually performed by Treasury Office of the bank. Treasury invest deposit for:

Ensuring optimum utilization of
available resources.

Rising additional resources required for
meeting credit demands.

Managing market and liquidity risks.

The Process of Deposit Mobilization

Investment Markets

Money Market
1. T.Bills and Govt. Securities 2. Bonds of Provincial Govt. 3. Defense Saving Certificates 4. Mutual Funds etc.

Capital Market
1. Equities e.g. shares and 2. Mutual Funds 3. Bonds 4. Debt Market

Foreign Exchange Market
1. Spot Transactions 2. TOM Transactions 3. Outright Transactions 4. Swap Transactions

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