Financial Institutions

Group Members
Amna Aziz
Mahvesh Zahra
Haris Tehseen
Abdul Saboor

SP13-BBA-011
SP13-BBA-113
SP13-BBA-114
SP13-BBA-001

Organization: Al-Falah Bank

Question 1
Instruments being used by Al-Falah Bank

Market treasury bills

Pakistan investment bonds

Overseas bonds

Sukuk bonds

Ordinary shares (listed)

Ordinary shares (unlisted)

Term finance certificate

Preference shares (listed)

Preference shares (unlisted)

Pakistan Euro bonds

Question 2
Ratio of debt and equity
Debt to equity ratio= total liabilities / total shareholders equity
689309225/44819068 = 15.5
Question 3
Instrument of debt and equity being used

Debt:
a) Market treasury bills

b) Pakistan investment bonds

c) Overseas bonds
d) Sukuk bonds
e) Term finance certificate
f) Pakistan Euro bonds

Equity:
a) Ordinary shares (listed)
b) Ordinary shares (unlisted)
c) Preference shares (listed)
d) Preference shares (unlisted)

Question 4
Islamic instrument being used

Personal banking:
a) Musharka home finance
b) Car Ijarah
c) Islamic stock portfolio
d) Sukkuk (bonds)
e) Mutual fund

Corporate Banking:
a) Murabaha
b) Salam
c) Istisna
d) Ijarah
e) Diminishing Musharaka
f) Letter of Guarantee

Question 5
Future instruments that Al-Falah Bank wants to float in the market
There are no specific instruments which bank want to float in the market

Question 6
How is Al-Falah Bank adding to the economy of Pakistan and what economic steps should
be taken to improve the economy of Pakistan.
The efficient financial system of any country is very important for its economy. Bank is
adding value in Pakistans economy as they provide platform for people to use their
savings in best and efficient way. The money circulates from surplus units to deficit units.
There Islamic banking facility is very good and enables people of religious mind to
utilize their idol money. As they receive fund, they invest it and open business which
creates employment and increase GDP growth.
There are no as such suggestions. We think there current banking technique is good and
adding value in countrys economy.

Question 7
Steps to improve economy of Pakistan:
1. Depoliticize central bank.
2. When inflation rises increase the interest rates and decrease when deflation.
3. Create the opportunities of employment
4. Improve the tax regulatory system
5. Harness the inflation expectations
6. Globalization
7. Allow the NBFIs to work properly as they are key to strengthen the economy.

8. Decrease the shadow economy

Reference:
Asfand Kayani
Branch Manager
Sunrise Arcade, DHA Phase 2, Gate 2, Main G.T Road, Islamabad