You Can Feel the recession !!!

Well ! if you can't then this means you have no feelings !

After a lot of Buzz on the whole globe we can see some significant effects of recession in Pakistani Economy especially on Financial Institutions and Banking Sector. FIs and Banks are now on a proactive stance and management is concentrating on cutting down the expenses and keeping the current position if not aiming for growth.

In reality its a hard time for both management and employees. SBP is pushing hard banks to maintains the Capital Adequacy Ration (CAR) in order to safeguard the interest of depositors, because these are the situations which could trigger a sheepwalk among the depositors even upon a rumor in the market. And such rumors are not only dangerous for individual institution but also for the whole industry. Therefore, by maintaining Capital Adequacy Ration SBP make sure that bank management has enough stake in business and they will never gonna lose their share !

Alongwith that SBP is also focusing on the portfolio health of Banks and FIs and trying to reduce the NPLs. Although, in current recession such NPLs are unavoidable and the can be said a normal thing. Or you can say that there woul be a natural percentage of NPLs in the market.

I read somewhere this quote that "if you don't have any bad loans this means that you are not lending !" So one should try and prepare to minimize these NPLs by adopting latest Risk Management techniques.

Businesses are in pressure, slow activity, high prices, political and economics conditions are adding to this recession. Government is not very much interested in tackling this recession or becoming proactive but they are concentrating more on getting aid and being paid to fight the war. But no matter how much you will get to fight the war , its always bad for economy in the end.

Whats inside an ATM Machine ?

To see an ATM Machine from Bank's Point of View.... Visit the following link

http://videos.howstuffworks.com/howstuffworks/3-how-atms-work-video.htm

How Money Laundering Works

How Money Laundering Works

by Julia Layton

Inside this Article

1. Introduction to How Money Laundering Works
2. Money-laundering Methods
3. Busted Money-laundering Operations

4. The Effects of Money Laundering
5. Fighting Money Laundering
6. Lots More Information
7. See more »

Source: 

http://money.howstuffworks.com

Patwari (Revenue) Record System in Pakistan

We as bankers considers the land a good security for our loans and advances. In Pakistan as we dont have any proper record of land therefore we rely on the record of revenue system. This record was acutually established before Partition to collect revenue from farmers. 

This record is very important and for bankers, especially the credits staff it is essential to have good knowledge about this system.  While googling on the internet I found some very good links which have good information about Patwari system and I want this to share with all of you so you can know more about it, coz the other option is very tough, time taking and full of sweat. I mean the option of getting knowledge from your experience. Although, it is necessary to go and deal them yourself because there are lot of things which are out of books and can only be dealt through your experience.

Here are the links,

http://en.wikipedia.org/wiki/Patwari

http://pportal.punjab.gov.pk/portal/docimages/12423EDO_Revenue.pdf

http://www.lhc.gov.pk/rulesorder/vol_1/ch9.htm

Its You ! which Matters ! Not JAIBP

Some days ago I received an email from a visitor asking about the job prospects after passing Stage-I of JAIBP. For that I would like tell all you guys that IBP is to improve your qualifcation and through this you not only improve your CV but also get knowledge about banking. Its always good for bankers to keep improving their knowledge but this doesn't guarantee a job to you, unless and untill you can prove your self and justify this degree in interview.

Therefore, make a habbit of keeping yourself upto date not only during your IBP exams but through out your life. Try to utilize available resources around you. For example the papers and magazines available in your office or college. Websites which contains update information on banking, e.g. www.ibp.org.pk , www.sbp.org.pk and there are many other sites you may find on this blog which can help you getting updated info.

IBP website is one of some good sites which contains not only updated information about latest jobs but also about economic events. You can read the economic newsletter on their website which is very good and informative. There is also an option for subscription of that newsletter (Although it never worked for me... I subscribed but never received any mail.) which you can use if you dont have access on internet but only the email . 

Similalry, SBP is a comprehensive website containing all the latest news about banking industry and SBP activities.

So keep your self update with the latest information .... because in economics they say you get a better bargain / deal if you have better information about the market.... and this is a rule of thumb.... go for it.

Good Luck!

Get Ready for the Summer Exams!

Although the result for winter is very late for Institute of Bankers JAIBP exams but who those are confident that they will get through should buy the books for the nexr stage and start working on that ! 

Get through the outline! prepare yourself ! Collect the maximum books among the referred books. and try to go through them thoroughly! atleast a thorough study of the IBP published books. Although those books are not so much well edited but still they covers the maximum topics.

Business Section of the newspaper, old papers and old students .... yead get all these things around you.... or you stay around them..... 

Not Lucky anymore!!!

Formally declared ! we are in recession phase! ..... All that free market theories failed and now Govts. are in to save us all!

Lots and lots of tips that how to keep yourseld in this critical economic situation.

Banking industry in Pakistan is facing a very hard time and the SBP is making the regulations more strict. Ultimately we are going back to that era in which the banks only invested in the T-Bills and allowed a very handsome profit on the deposits. Economic activities are getting slower! 

But the shock in less in our region as compare to Other areas of the world.