Presented to: Sir Zahid Hussain

Presented by: Aisha tabassum

Topic:
Capital market instruments and its role in
banking.
 Acknowledgement
• Fist of all I would like to thank my Almighty Allah who
gave me courage to complete this assignment with full of
my knowledge, skills and devotion to the work.

• I am also thankful to my Prof. Mr. Zahid from AIMS

COLLEGE OF COMMERCE FAISALABAD whose help,
stimulating suggestions and encouragement helped me in
all the time of research for and writing of this assignment.
Topics which I discussed today:

• Introduction
• Practical Study
• Swot analysis
• Conclusion
• Recommendations
 Introduction

 What is capital market?

 What is money market?

 Money market &Capital market.

 Capital market instruments.
Treasury/Government Bonds
Treasury/Government Notes
Treasury/Government Bills
Stocks
Mortgages
Corporate bonds
Government securities
 Government Agency Securities

State and Local Government Bonds

Consumer and Bank Commercial Loans

 Role of capital market :

Practical study
Asian development bank
Introduction:
The Asia Bond Monitor (ABM) reviews recent
developments in East Asian local currency bond
markets along with the outlook, risks, and policy
challenges. It covers the 10 Association of
Southeast Asian Nations member countries plus
the People's Republic of China; Hong Kong,
China; and the Republic of Korea.
 The ABM is a part of the Asia Bond Market
Initiative
supported by the Asian Development Bank
and funded by the Government of Japan.
 Local currency bond markets in emerging East
Asia expanded by an annual 18.8% as of the end
of June, with $4.8 trillion in paper outstanding.
This large expansion was driven by 24.4% year-
on-year growth in the corporate bond market,
which has become an increasingly important
source of funding for private sector investment.
Strong offshore and onshore demand for emerging
East Asia's local currency bonds has reduced the
premiums paid on corporate debt over government
benchmark bonds and contributed to a flattening
in government bond yield curves.
Emerging East Asian Local
Currency Bond Markets
 Bond Market Developments in the Second
Quarter of 2010
Growth in emerging East Asia’s local
currency(LCY) bond market in 2Q10,
which exceeded1Q10’s growth rate of
3.8% quarter-on-quarter, was backed
across the region by significant policy
measures and strong innovation in both
government and corporate bond markets.
 Interest in retail bonds increased in 2Q10
Following several months of delay due to political
tensions, the Thai government sold 80 billion in
savings bonds in June out of a planned total of 100
billion. The Philippine government’s retail bonds
have continued to attract domestic investor
interest. The Philippines sold a total of 97.5 billion
of retail treasury bonds in August. One of the most
liquid peso bonds at present is a 50 billion retail
treasury bonds issued in September 2009.
 Corporate Bond Market Developments

The emerging East Asian4 local currency

(LCY) corporate bond market grew
24.4% year-on year in 2Q10, compared
with 16.7% for the government bond
market.
 Bond Market Returns
The Asian Bond Fund (ABF) Pan Asian Bond
Index has gained 7.9% to date in 2010,
compared with 5.0% for all of 2009Indonesian
bonds were the best performers, gaining
15.0%, followed by the Philippines (9.3%) and
Thailand (7.5%).The year-to-date returns for
emerging East Asia’s bond market have in
many cases been overtaken by returns in
individual equity markets.
Swot Analysis
Strengths:
 Increasing investments in Securities
Market, the Company is also investing in
multiple spheres - people, technology,
capacity expansion and brand building.

 This
is essential for sustaining the growth
momentum and continuous Value creation
WEAKNESSES:
 No trading by trading members

 Due to change in technology the role of

regional stock exchange needs to be
reinvented.
OPPORTUNITY:
A large domestic market that is still into
traditional fixed income and other
government savings is all buy bound to
enter the market sooner if not later.
THREAT:

Global Economic slowdown, Currency

mismanagement, High global commodity
prices. Over valuation in Index scripts,
Non Liquidity in non-derivatives related
scripts. Change in government focus on
controlling inflation.
CONCLUSION
 In light of the above, I defined capital market,
Money market and Capital market instruments.
While appreciating the steps Government has
taken in brining a shift in the way capital market
was regulated, we should be prepared to the
challenging time ahead and work on the
challenges discussed. ADB being a long standing
development partner of Pakistan would continue
working for creating the best possible enabling
environment for the domestic capital market
Recommendations
 The Government agrees with the views that
capital markets are key to improving the
financial wellbeing of all New Zealanders
and a vital source of finance for business.

 It is recommended that strengthen and

better target the Financial Advisers Act are
also being progressed.
References
 Internet
 Books
 Asian Development bank