FATF Impact: Gulf investors seek exit opportunity from Pakistan’s banking industry

[Rollno21]

Sir the banks profits are shrinking which is good for economy ,how ever FATF has nothing to do

What ? Shrinking profits for banks is good for economy.seriously ?

 

[Talwar e Pakistan]

We have been under FATF before, Pakistan's economy is resilient and adaptive - these temporary set-backs will be replaced by new opportunities.

 

[volatile]

Yes when banks money business cant

What ? Shrinking profits for banks is good for economy.seriously ?

 

[Rollno21]

Yes when banks money business cant

How do you think banks make money

 

[Pakistansdefender]

In my college days the Tavun group was doing so much investment.
The tallest Tower in Lahore was their project. And then this showbaz came, destroyed lahore, destroyed this project and together with it the Mubarak Tower project was destroyed.
All the plazas near liberty roundabout were destroyed, destroying billion thousands of investments. Due to personal grudge. Lahore was not the way it was.

 

[The Accountant]

Sir the banks profits are shrinking which is good for economy ,how ever FATF has nothing to do

What are the discount rates currently being offered by SBP ? Banking profits follows an investment and saving cycle driven by monetary policy ... Currently its investment cycle with lower margins and offcourse lower spreads but if the consumption pickup like it was in 2005 sbp will increase the discount and spreads will increase ... This is a normal cycle ... It never means that banking industry is shrinking ...

 

[Manidabest]

Pakistan has a long a painful road ahead to disassociate themselves from the terrorism tag. Some actions are taken in the right direction it seems.

dont worry about Pakistan worry about your country which is turning into saffron terrorists hub .... kathua rape case is just a tip of an iceberg

these tags are not due to ignorance or inablity but rather choice..after the FIF and JuD Fiasco, even the most hardcore deniers will come to an agreement that Pakistani army hands are tainted with blood of innocent killed by terrorism at the hands of proxies nurtured by none other than its own army!

well if u r noora supporter then i can understand ur poutrage against the army is understandable and if u r saying all this due to frustration of your country being associated with terrorism then i do understand that but with an addition that u have zero knowledge of world affairs and media's role in fifth generation warfare

 

[volatile]

What are the discount rates currently being offered by SBP ? Banking profits follows an investment and saving cycle driven by monetary policy ... Currently its investment cycle with lower margins and offcourse lower spreads but if the consumption pickup like it was in 2005 sbp will increase the discount and spreads will increase ... This is a normal cycle ... It never means that banking industry is shrinking ...

Brother Discount rates are less around 6% but banks spread are very high in the Past even today for consumer and industrial financing ,Point here is I have worked with many bankers and banking industry (Im not a banker) there is a great depression these days in banks ,as major banks are now trying to get smaller banks to become big banks , Again the consumption is good for economy the real thing which will make SBP to increase interest rate will be inflation at the moment inflation is around 5% . so 5.75% is the rate ,at the moment each bank is looking to offset higher costs of operation which has been done each year

How do you think banks make money

Hey pal ,Bank makes money from depositors money and between lending and buying the reason i said banks profits are going down is bcas banks have higher operating expenses and less margin these days that is good for econmy also money is in rotation is better then in banks

 

[The Accountant]

major banks are now trying to get smaller banks to become big banks ,

Man this is consolidating ... not cutting down

Again the consumption is good for economy

Consumption is good if you have local production ... Right now you current account deficit is widening as your consumption is higher and your production is lower resulting in imports and our loan is increasing ...

 

[volatile]

Man this is consolidating ... not cutting down

Imagine when two banks merge what will happens to jobs ,its a way of restructuring things specially staff so in terms of asset based the industry or individual banks will expand but in terms of business wise it is the same

Consumption is good if you have local production ... Right now you current account deficit is widening as your consumption is higher and your production is lower resulting in imports and our loan is increasing ...

Im sorry please check CPI basket which is a measure of inflation and effect on consumption ,So in terms of CPI basket the inflation has risen slightly in April 18 from 3.5% to 4.1% but nothing alarming ,Only thing which effected the CPI basket was fuel prices which was hit due to devaluation of Rupee ,it has nothing to do with over spending ,Infact over spending is good for economy as GDP growth is based on Consumer spening (IN US it is 60-70 %) of GDP growth

 

[The Accountant]

Imagine when two banks merge what will happens to jobs ,its a way of restructuring things specially staff so in terms of asset based the industry or individual banks will expand but in terms of business wise it is the same

But it is the need of the day ... For example in a locality where deposit base is 100 people and banks operation breakeven point is above 60 then two bank branches will not be profitable ... A banking system will be shrinking if its asset size starts declining which us not the case ... The current phenomenon is called consolidation

Imagine when two banks merge what will happens to jobs ,its a way of restructuring things specially staff so in terms of asset based the industry or individual banks will expand but in terms of business wise it is the same


Im sorry please check CPI basket which is a measure of inflation and effect on consumption ,So in terms of CPI basket the inflation has risen slightly in April 18 from 3.5% to 4.1% but nothing alarming ,Only thing which effected the CPI basket was fuel prices which was hit due to devaluation of Rupee ,it has nothing to do with over spending ,Infact over spending is good for economy as GDP growth is based on Consumer spening (IN US it is 60-70 %) of GDP growth

And US is the world largest debtor and its economy is under control of china due to its huge treasury bonds owned by China ...

Issue with you half cocked self claimed economists is you dont understand the core of economics and start talking based on media report ... Had economic management so easy and to just boost economy through increased consumption then why dont just giving free loan or negative interest like Japan ? Why Japan is charging interest on savings ? Consumption is good when you have access capacity but in a country where we have short capacity consumption is only putting pressure on current acvount ... We have to stop giving consumer loans and have to focus on investment loans which we are not

 

[volatile]

But it is the need of the day ... For example in a locality where deposit base is 100 people and banks operation breakeven point is above 60 then two bank branches will not be profitable ... A banking system will be shrinking if its asset size starts declining which us not the case ... The current phenomenon is called consolidation

Sir you can call it what ever but thing is Banks are not enjoying the same profits as 5 years ago

And US is the world largest debtor and its economy is under control of china due to its huge treasury bonds owned by China ...

Issue with you half cocked self claimed economists is you dont understand the core of economics and start talking based on media report ... Had economic management so easy and to just boost economy through increased consumption then why dont just giving free loan or negative interest like Japan ? Why Japan is charging interest on savings ? Consumption is good when you have access capacity but in a country where we have short capacity consumption is only putting pressure on current acvount ... We have to stop giving consumer loans and have to focus on investment loans which we are not

Your all feedbacks are personal rather than on facts ,Now where i have put Japan and US as example of best financial management countries ,I have reference here that GDP needs consumer spending whats wrong with that ,problem is i never claimed to be economist but i do know things as i study and learn from various things , to answer you irrelevant question ,the basis points are the true killer of any growth that is the reason in US/Japan and many other countries the interest rate is close to 1% ,perhaps if we stick to Pakistan it will be best for every one

 

[pzfz]

The OP is clueless if s/he links this with FATF impact. (The Indians having shattering orgasms are to be expected).

Alfalah group has been struggling for years, with Warid, Wateen etc doing very poorly. Alfalah is also having issues. None of that is related to FATF.
Meezan is a small, Islamic bank, and which is probably too big (600 branches) for what is a niche service and Faysal Bank is the remains of RBS, which you might remember was fucked in its arse during the financial crises.

sparten, forgive these people. This is what happens when you have no clue about financial matters. And then there's those that bring up Hafiz Saeed in here. In addition to being small boutique banks, the saudis are themselves feeling the heat wrt the economy back home. And they need all the capital they can get to try and buy 500 million paintings in their moronic "fight" against Qatar and Iran.