FINANCIAL INSTITUTIONS IN PAKISTAN

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Finance Money used by a company, provided by shareholders or by Loans. Money resources of state, company or person.

The provision of Money when and where required. The art and science of managing money.
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What is Market? It is an institution through which buyers and sellers meet to exchange goods, services, and productive resources. Types of Markets There are essentially three types of markets within the global economic system. 1-The factor markets allocate factors of production (land, labor, skills, capital) and distribute income (wages, rent) to the owners of productive resources.
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2-Consuming units use most of their income from factor markets to purchase goods and services in the product markets. 3-The financial markets channel savings to those individuals and institutions needing more funds for spending than are provided by their current incomes.

FINANCIAL INSTITUTIONS IN PAKISTAN

Financial Asset A claim against the income or wealth of a business firm, household, or unit of government usually represented by a certificate, receipt, computer record file, or other legal document, and usually created by or related to the lending of money.

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How Financial Assets Are Born To acquire assets, households and business firms may use current income and accumulated savings internal financing.

An economic unit may also raise funds by issuing financial liabilities (debt) or stock (equities), provided that a buyer can be found external financing.
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What is Money? All financial assets are valued in terms of money, and flows of funds between lenders and borrowers occur through the medium of money. Money itself is a financial asset, because all forms of money in use today are claims against some public or private institution.
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The Functions of Money Money serves as a standard of value (or unit of account) for all goods and services.
Money

serves as a medium of exchange, such that buyers and sellers no longer need to have an exact coincidence of wants in terms of quality, quantity, time, and location.

Money

serves as a store of value a reserve of future purchasing power. However, the value of money can experience marked fluctuations.
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 Money

functions as the only perfectly liquid asset in the financial system. It exhibits price stability, ready marketability, and reversibility.

Different Kinds of Financial Assets

Accepted

in payment for purchases of goods and services is money. Currency and checking accounts are forms of money.

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 Equities

represent ownership shares in a business firm and are claims against the firms profits and against proceeds from the sale of its assets. Common stock and preferred stock are equities.

Debt

securities entitle their holders to a priority claim over the holders of equities to the assets and income of an economic unit. They can be negotiable or nonnegotiable. Examples include bonds, notes, accounts payable, and savings deposits.
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 Derivatives

have a market value that is tied to or influenced by the value or return on a financial asset. Examples include futures contracts, options, and swaps.

FINANCIAL MARKETS FOR INVESTORS

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What is investment ? Why invest ? Where invest ? An Introduction to Financial Market Types of Financial Market

What is Investment ? Money we earn is partly spent and rest saved for meeting future expenses. Instead of keeping the savings idle we like to use savings in order to get return on it in the future. This is called Investment.
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Why Invest ? Earn Return on idle resources Generate sum of money for specified goal in life Make provision for uncertain future To meet the cost of inflation. An Introduction to Financial Market In economics, a financial market is a mechanism that allows people to easily buy & sell (trade) financial securities (such as stocks & bonds etc ), commodities (such as precious metals or agricultural goods etc).
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Types of Financial Market

Capital market Commodity Market Money Market

Financial Market

Derivatives Market

Insurance Market

Foreign Exchange Market

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Options for Retail Investor Equity Debt Mutual Funds Fixed Deposits with Banks National Saving Schemes Gold Real Estate Insurance Commodity Foreign Exchange etc
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Equity Shares It commonly referred to as ordinary share represents the form of fractional ownership in a business venture. Equity shareholders have the right to get dividends as declared. DEBT
This instrument represents contract whereby one party lend money to another on pre-determined terms with regards to rate and periodicity of interest, repayment of principle amount by the borrower to the lender.For example: COD, Bonds, TFC etc
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Mutual Fund A Mutual fund is a collective investment vehicle that pools together investor money. This collective pool of money is invested in accordance to stated objective.

Mutual Funds are : A large pool of resources Managed by professionals Diversified investment for lower risk & better return
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Fixed Deposits with Banks It allows an investor to deposit a lump sum of money for a fixed period ranging from a few weeks to a few year and earn a pre-determined rate of interest. Guaranteed Returns depends upon term. Safe and Secured Investments National Savings Schemes National Savings Certificate National Savings Deposits
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GOLD
Physical Gold in the form of bars and coins Gold accounts in banks where units in the gold a/c in the banks are backed up by physical gold held in the bank and bank gives assurance that the investor can convert the gold back to cash anytime.

Real Estate Investment

Financial instrument that invests primarily in the real estate such as offices, apartments, shopping centres, hotels etc. Tend to pay high returns( often as high as 10%) Attractive investment opportunity when the stock market is falling.
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Insurance A promise of compensation for specific potential future losses in exchange for a periodic payment. Now it is considered as a investment tool also: Traditional Plans Commodity Investment in sugar, cotton, rice, fertilizers, wheat etc Foreign Exchange Investment in foreign currencies
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Conclusion Investors looks at superior returns and measured risk therefore he has to select a dynamically balanced asset allocation mix consisting of the different investment options available in the Financial Market.

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Financial Institutions Financial institutions permit the flow of funds between borrowers and lenders by facilitating financial transactions

Institutions may be categorised by differences in the sources and uses of funds

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Categories of Financial Institutions Depository financial institutions Investment banks and merchant banks (money market corporations) Contractual savings institutions Finance companies Unit trust

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Depository financial institutions

Attract savings from depositors and investors to provide loan facilities to borrowers Commercial banks Building societies Credit unions

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Investment Banks and Merchant Banks (money market corporations) Mainly provide off-balance-sheet (OBS) transactions to corporations and government Advice on mergers and acquisitions, portfolio restructuring, finance and risk management Provide some funding

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FINANCIAL INSTITUTIONS IN PAKISTAN PUBLIC SECTOR BANKS FIRST WOMEN BANK LIMITED THE BANK OF KHYBER NATIONAL BANK OF PAKISTAN THE BANK OF PUNJAB THE SINDH BANK THE BANK OF SINDH ISLAMIC BANKS

BANKISLAMI PAKISTAN LIMITED ALBARAKA BANK (PAKISTAN) LIMITED BURJ ISLAMIC BANK LIMITED MEEZAN BANK LIMITED DUBAI ISLAMIC BANK PAKISTANPAKISTAN LIMITED FINANCIAL INSTITUTIONS IN

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PRIVATE BANKS SAMBA BANK LIMITED JS BANK LIMITED ALLIED BANK LIMITED KASB BANK LIMITED SUMMIT BANK LIMITED MCB BANK LIMITED ASKARI BANK LIMITED MYBANK LIMITED ATLAS BANK LIMITED NIB BANK LIMITED BANK ALFALAH LIMITED SILK BANK LIMITED BANK AL HABIB LIMITED SONERI BANK LIMITED THE ROYAL BANK OF SCOTLAND LIMITED STANDARD CHARTERED BANK (PAKISTAN) LIMITED FINANCIAL INSTITUTIONS IN PAKISTAN

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FAYSAL BANK LIMITED UNITED BANK LIMITED HABIB BANK LIMITED HABIB METROPOLITAN BANK LIMITED

FOREIGN BANKS
THE BANK OF TOKYO-MITSUBISHI UFJ LIMITED - PAKISTAN OPERATIONS CITIBANK N.A. - PAKISTAN OPERATIONS HSBC BANK MIDDLE EAST LIMITED PAKISTAN DEUTSCHE BANK AG - PAKISTAN OPERATIONS BARCLAYS BANK PLC OMAN INTERNATIONAL BANK S.A.O.G PAKISTAN OPERATIONS

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DEVELOPMENT FINANCIAL INSTITUTIONS HOUSE BUILDING FINANCE CORPORATION PAKISTAN KUWAIT INVESTMENT COMPANY LIMITED PAK BRUNEI INVESTMENT COMPANY LIMITED PAK OMAN INVESTMENT COMPANY LIMITED PAK IRAN JOINT INVESTMENT COMPANY SAUDI PAK INDUSTRIAL & AGRICULTURAL INVESTMENT COMPANY LIMITED PAK LIBYA HOLDING COMPANY LIMITED PAK-CHINA INVESTMENT COMPANY LIMITED PAK BRUNEI INVESTMENT COMPANY LIMITED

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SPECIALIZED BANKS INDUSTRIAL DEVELOPMENT BANK OF PAKISTAN THE PUNJAB PROVINCIAL COOPERATIVE BANK LTD SME BANK LIMITED ZARAI TARAQIATI BANK LIMITED ARSLAAN BANK LIMITED MICRO FINANCE BANKS / INSTITUTIONS NRSP Micro Finance Bank Limited The First Micro Finance Bank Limited Khushali Bank Limited Karakuram Bank Network Micro Finance Bank Pak Oman Micro Finance Bank Rozgar Micro Finance Bank, Karachi Tameer Microfinance Bank LimitedIN PAKISTAN FINANCIAL INSTITUTIONS

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Pakistan Investment banks 1. BMA Capital Management Limited 2. Invest Capital Investment Bank Limited 3. AMZ Securities 4. Orix Leasing (Pakistan) Limited 5. Trust Investment Bank Limited 6. JS Investment Bank Limited 7. Atlas Investment Bank Limited

Discount and Guarantee Houses 1. First Credit & Discount Corp Limited 2. National Discounting Services Limited 3. Speedway Fordmetall (Pakistan) Limited Pakistan Housing Finance Companies 1. Asian Housing Finance Limited 2. Citibank Housing Finance Company Limited 3. House Building Finance Corporation 4. International Housing Finance Limited FINANCIAL INSTITUTIONS IN PAKISTAN

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http://www.pakistaneconomist.com/database2/pakbanks.asp http://www.viewsbuzz.com/list-of-all-banks-in-pakistan-commercial-national-investment-saving-

islamic-banks/

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