Banking in fact is primitive as human society, for ever since man came to realize the importance of money as a medium of exchange; the necessity of a controlling or regulating agency or institution was naturally felt. Perhaps it was the Babylonians who developed banking system as early as 2000 BC. IT is evident that the temples of Babylon were used as ‘Banks’ because of the prevalent respect and confidence in the clergy.
The partition plan was announced on June 3, 1947 and August 15, 1949 was fixed as the date on which independence was to take effect. It was decided that the Reserve bank of India should continue to function in the dominion of Pakistan until September 30, 1948 due to administrative and technical difficulties involved in immediately establishing and operating a Central Bank.
At the time of partition, total number of banks in Pakistan were 38 out of these the commercial banks in Pakistan were 2, which were Habib Bank Limited and Australia Bank of India. The total deposits in Pakistani banks stood at Rs.880 million whereas the advances were Rs.198 million. The Governor General of Pakistan, Muhammad Ali Jinnah issued the order for the establishment of State Bank of Pakistan on 1st of July 1948.
In 1949, National Bank of Pakistan was established. It started with six offices in former East Pakistan. There were 14 Pakistani scheduled commercial banks operating in the country on December 1973, the name of these were:
National Bank of Pakistan
Habib Bank Limited
Habib Bank (Overseas) Limited
United Bank Limited
Muslim Commercial Bank Limited
Commerce Bank Limited
Australia Bank Limited
Standard Bank Limited
Bank of Bahawalpur Limited
Premier Bank Limited
Pak Bank Limited
Lahore Commercial Bank Limited
Sarhad Bank Limited
Punjab Provincial Co-operative Bank Limited
The Pakistan Banking Council prepared banks amalgamation schemes in 1974 for amalgamation of smaller banks with the... [continues]
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