Topics: Bank, Financial services, Central bank Pages: 4 (924 words) Published: February 12, 2014

What is bank?

Finance is the lifeblood of trade, commerce and industry. Now days, banking sector acts as the backbone of modern business. Development any country mainly depends upon the banking system.

The banking, which was known in various forms and guises in
The ancient civilization in various parts of the world did not Coincide with the emergence of the modern Banks. The
Banking which had its roots in the flourished culture and had Lost its required effectiveness regained the strength with the Development the modern banking.

Pakistan’s financial sector consists of Scheduled Commercial Banks, which include nationalized, foreign, and private banks; And Non-banking Financial Institutions (NBFIs), which include Development Finance Institutions (DFIs), Investment Bank

Leasing companies, maharajas, and housing finance companies.

History of banking sector in Pakistan: -
Prior to partition in 1947, branches of British banks dominated banking in Pakistan. The state Bank of Pakistan, the central bank, was formed after partition in 1948. It assumed the supervisory and monetary policy powers of the state Bank of India. In the period of 60s to 70s the emergence of a number of specialized development finance institutions (Defies) such as industrial Development Bank of Pakistan (IDBP) and the agricultural development bank (ADB). These DFIs were either controlled directly by the state or through the SBP, and were intended to concentrate on specific priority sector lending. In 1947 the Government nationalized all domestic commercial banks. The Pakistan Banking council was established, which assumed the role of a banking holding company but with limited supervisory powers. However, PBC was dissolved in 1977, leaving the SBP as the sole regulatory authority for banks and...
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