MCB is the best Conventional one in terms of Profits I think and HBL is Largest one in Pakistan.
AFAIK State Bank ask a certain Reserve to be HOLD by EVERY BANK in Pakistan and State Bank also takes Preemptive Actions if they dont Hold the Reserves as per State Bank and this makes the Risk of Default very Low but not completely Eliminated as last year there was whole KASB Bank issue took Place where State Bank took over the Bank before it was close to go Default. So Pakistani Banking System is quite SAFE and SECURE.
Safeguarding Risk is what makes the Banking System in Pakistan Safe actually. SBP has a system in place for Potential Bankruptcy for Banks and that is what everyone wants for Safe Banking.
The situation had got Better since 2008. The Global Financial Crisis was a wake-up call for SBP as well as Commercial Banks and Stronger Regularity Measures have been Introduced and also we witness the ACTIONS on the basis of bad Performance according to regulations so now I believe Pakistani Banking System is SAFER then PAST and SBP has become more and more Vigilant about our Banking system now a days so Banking system has less Risk as long as Market Risk does not comes in action as in case of Global Financial Crisis that effected the whole Global Market not just Banking System but in Stable situation it wont present the threat.
The Traditional Style Banking is still in Practice what I have been talking about was CENTRAL BANK REGULARITIES so it has not much to do with Global Financial Crisis instead it is Lose Command over Bank's use of Funds that cause Collapse in the past as Banks issued lot of Loans in USA to Property Market without considering their Reserve Position and when USA Property Market Collapsed the Whole Banking system in the World took hit and another bad thing was Cooked up Credit Ratings of USA Banks which causes growth of investment of British and European Banks in USA Banking Sector and the whole system Collapse took their Investment with them as well.
No but part of Finance related position so I do have a basic knowledge of things but never involved in Money Market even only Observed.
They do exert lot of Controls and now a days in Banks a separate departments are made just for Catering SBP Requirements. Of Course they wont be looking after everything in our Banking System but when their is a serious Situation then they do come to the equation and act accordingly and this KASB issue was one example of it. What they are providing our Banking system by injecting Cash is CREDIT and they want a RETURN and I dont think they would let go of their Return by letting the Banks COLLAPSE to give them WRITE OFFS. Its like a civilized Loan Sharks which provide loan and then ask for return by hook or by crook in a Civilized White Collar Manner.
My Advice to you would be open an Account on any LARGE Bank NEAREST to your Residence because it is better to have all the support available Nearby then Far away.
