from the small to the big one, whats the situation like there?? I know of ladies who are heading of to Pak to take out all their savings from their account? Is it that bad? Or is it just the feeling that its not safe anymore? Or is it that something is gonna happen?
Re: Banks in Pak
Lot of rumors are being spread but banks in Pakistan are quite safe with State Bank's prudential controls and checks.
Re: Banks in Pak
Things are not good at all, quite a few people i know are withdrawing all their cash from Pakistani banks because they are about to close their business (according to them).
Re: Banks in Pak
most of the banks you see going bust in US and WEst, were mostly cause of property loans. in Pakistan people really dont have mortgages or real estate loans, most of them buy on upfront Cash only. for that reason, banks has nt borrowed money from big american banks and lent to people.
2ndly credit financing is not that huge in Pakistan, there has been increase in it in recent years by leasing cars, and other luxry items.
So I dont think it will have that much impact on Pakistan.
What may effect Pakistan banks or stocks ,
- its level foreign reserves getting lower
- terrorist attacks and un stability - investors pulling out investment as a result.
Pakistan has its own situation but its has very little impact due to global crunch world is facing.
most of the banks you see going bust in US and WEst, were mostly cause of property loans. in Pakistan people really dont have mortgages or real estate loans, most of them buy on upfront Cash only. for that reason, banks has nt borrowed money from big american banks and lent to people.
2ndly credit financing is not that huge in Pakistan, there has been increase in it in recent years by leasing cars, and other luxry items.
So I dont think it will have that much impact on Pakistan.
What may effect Pakistan banks or stocks ,
- its level foreign reserves getting lower
- terrorist attacks and un stability - investors pulling out investment as a result.
Pakistan has its own situation but its has very little impact due to global crunch world is facing.
That's quite true as well but i am not too sure why people are in panic.
Re: Banks in Pak
As Mostar bhai said it, its the rumours which is causing panic in the people nothing else.
Re: Banks in Pak
People are emptying their lockers, and that will give robbers a golden opportunity to strike homes.
Re: Banks in Pak
Is there any insurance associated with the saving or CD accounts in Pakistani banks (FDIC style)?
Re: Banks in Pak
Pakistan is said to have the second soundest banking system in Asia, behind only India, and well ahead of China.
no, I don’t think its true at all. Both indian and pakistani banks have given many loans, with artificial background checks. There is no true credit rating system in subcontinent anyways.
Re: Banks in Pak
I saw GEO show "Aaj Kamran Khan ke sath" yesterday and today. In both the shows several leading banking and textile key figures were invited along with Sheikh Alnnahyan of UAE. All of the personalities were focusing on the single point that banks in Pakistan have no threat at all and despite all the world financial crisis, Pakistan's banking system has no imminent problems.
I just wonder if its all true or they are all exagerrating to gain consumers' confidence! What I hear all day long is all opposite to wut these guys said.
banks in Pakistan have no threat at all and despite all the world financial crisis, Pakistan's banking system has no imminent problems.
I kinda agree. Pakistani banks never bought securities from US.
MERELY AS A MEMBER OF THIS FORUM (Paklinks) AND BY VIRTUE OF MY PROFESSION BEING BANKING......( I AM SENIOR VICE PRESIDENT & DIVISIONAL HEAD-BUSINESS DEVELOPMENT DIVISION/SUPPORT & PRIORITY BANKING AT UNITED BANK LIMITED-H.O, KARACHI)... I WOULD LIKE TO ADVISE MY FELLOW MEMBERS THAT THERE ISN'T AN IOTA OF NEED TO WORRY ABOUT ANY SITUATION AT ANY PAKISTANI BANK HERE IN PAKISTAN.
ALLHAMDOULILLAH....ALL IS WELL AND BUSINESS RUNS AS SMOOTH AS IT HAS ALWAYS BEEN.
THIS IS A PERSONAL STATEMENT.
PLEASE BROWSE THROUGH DAWN INTERNET EDITION OF PAST TWO WEEKS WHERE YOU'LL FIND THE AUTHENTIC STATEMENT OF THE GOVERNOR SBP AND THE ADVISOR FINANCE, GOVT OF PAKISTAN QUITE SELF EXPLICIT.
JAHAN TUKK....... RUMOR MONGERING KA TA'ALUQQ HAI... TOU USKA ILAAJ TOU HAKIM LUQMAN KE PASS BHI NAHIN...:):):):)
no, I don't think its true at all. Both indian and pakistani banks have given many loans, with artificial background checks. There is no true credit rating system in subcontinent anyways.
I dont know about India, but Pakistan has now credit history and rating system in place, one who defaulted cant get another loan, currently its managed by State Bank of Pakistan.
Re: Banks in Pak
Mobile SMS!!! OMG they should be banned. People are forwarding rumours without thinking and checking the authenticity.
Yes, I heard this sentiment also today, that pakistani banking is sound and was not totally affected by the Global Meltdown.
Re: Banks in Pak
herd mentality.
Re: Banks in Pak
Ladies and Gents rushing to Pakistan from western countries to take out all their money and etc.. where they gonna put it? in collapsing banking sector of US or Europe?
THERE ISN'T AN IOTA OF NEED TO WORRY ABOUT ANY SITUATION AT ANY PAKISTANI BANK HERE IN PAKISTAN.
Arjay uncle-
Can you help me with my following concerns
1. Are saving accounts in Pakistani banks are insured?
2. Are the bank consumer loans insured?
3. Are there enough reserves to back the total insured amount?
4. In worst case scenario, if more borrowers default on their loans, will banks be able to float?
thanks in advance