Sbp and Its Role and Functions
Bank “A financial institution that accepts deposits, extends credit, and channels the money into lending activities. It generates profits from transaction fees on financial services and on the interest it charges for lending.”
Significance of Banking
Banking is one of the most sensitive businesses all over the world. Banks play very important role in the economy of a country and Pakistan is no exemption. Banks are custodian to the assets of the general masses. The banking sector plays a significant role in a contemporary world of money and economy. It influences and facilitates many different but integrated economic activities like resources mobilization, poverty elimination, production and distribution of public finance. It is purchase of car or building of home banks is always there to serve you better. It is playground or any educational or healthy societal activity the money of banks nurtures them. It is an industrial project or agricultural development of the country the sponsor-ship of banks is very much involved. Banks play very positive and important role in the overall economic development of the country.
Central bank
“The central bank is the head, the leader and the supervisor of the banking and monetary system of a country”
History and Introduction of Central Bank
Central bank is the most important bank of a country. Its importance increased manifold during past century. It is the symbol of financial sovereignty and stability of the country. It is the head of banking and monetary system. The principles on which a central operates are different from those of the commercial banks. It does not work for profit motive. It acts in the national interest and earning of profit is only a secondary consideration. It does not compete with other banks; rather it is their supervisor. Every country has its own central bank and it must be independent of political influence.
Before the First World War the govt. used to authorize a bank to
Significance of Banking
Banking is one of the most sensitive businesses all over the world. Banks play very important role in the economy of a country and Pakistan is no exemption. Banks are custodian to the assets of the general masses. The banking sector plays a significant role in a contemporary world of money and economy. It influences and facilitates many different but integrated economic activities like resources mobilization, poverty elimination, production and distribution of public finance. It is purchase of car or building of home banks is always there to serve you better. It is playground or any educational or healthy societal activity the money of banks nurtures them. It is an industrial project or agricultural development of the country the sponsor-ship of banks is very much involved. Banks play very positive and important role in the overall economic development of the country.
Central bank
“The central bank is the head, the leader and the supervisor of the banking and monetary system of a country”
History and Introduction of Central Bank
Central bank is the most important bank of a country. Its importance increased manifold during past century. It is the symbol of financial sovereignty and stability of the country. It is the head of banking and monetary system. The principles on which a central operates are different from those of the commercial banks. It does not work for profit motive. It acts in the national interest and earning of profit is only a secondary consideration. It does not compete with other banks; rather it is their supervisor. Every country has its own central bank and it must be independent of political influence.
Before the First World War the govt. used to authorize a bank to