Accepting for the purpose of lending or investment of deposits of money from public, repayable on demand or otherwise and withdrawal

by cheque, draft, order or otherwise.

(sec.5 (1) and 5(B)Banking Cos Ordinance, 1962 of

Pakistan)

For nearly a year after partition, Pakistan had no central bank. Habib Bank established in 1941 filled this gap initially, until the State Bank of Pakistan (SBP) was set up in 1948 under quasi-government ownership.

Habib Bank, Allied Bank and National Bank were amongst the first to start operations with strong support from the central bank.

Commercial banking grew favorably in Pakistan until 1974. Under the nationalization policy implemented by Zulfikar Ali Bhuttos government.

thirteen banks were brought under full government control, and consolidated into six nationalized banks

Over time, the financial sector grew to serve primarily large corporate business, politicians and the government.

Board of Directors and CEOs were not independently appointed. Lending decisions were not always commercially motivated, and many billions of rupees were unsurprisingly funneled out of the financial system as bad loans.

By 1991, the Bank Nationalisation Act was amended, and 23 banks were established of which ten were domestically licensed

By 1997, there were still four major state-owned banks, but they now faced competition from 21 domestic banks and 27 foreign banks.

After privatization, transformational reforms were pushed through. The central banks regulatory powers were restored via amendments to the Banking Companies Ordinance (1962) and the State Bank of Pakistan Act (1956)

Buoyed by the spirit of liberalisation, the sectors landscape has changed significantly. By 2010, there were five public commercial banks,25 domestic private banks, six foreign banks and four specialised banks. There are now 9,348 bank branches spread throughout the country, catering to the needs of some 28 million deposit account-holders.

EasyPaisa, Omni Bank And Different Type of Short Banks Introduce in Pakistan

INTREST RATE
9.50% 8.50% 7.50% 6.50% 5.50% 4.50% 3.50% INTREST RATE

2.50%
1.50% 0.50% 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

http://notes4students.webs.com/apps/forums/topics/show/1 246517 History Of Banking Published in Tribune by Amna Khalabat Dated: November 4, 2011 Link: http://tribune.com.pk/story/286458/history-of-banking-inpakistan--of-humble-origins-and-vast-potential/ Indicators From www.worldbank.org