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ISHTIAQ AHMED AH-526270 Topic: Role of Commercial

Banks in developing the Economy of Pakistan

Introduction to Topic
Bank: A financial institution and a financial intermediary that accepts deposits and channels those deposits into lending activities. Origin of the word: Middle French banqu Old Italian banca Old High German banc, bank

Types of banks
Commercial bank Community banks Credit unions Postal savings banks Private Banks Offshore banks Savings bank Building societies and Landesbanks

Introduction to Topic
Commercial bank: A type of financial institution that provides transactional, savings, and money market accounts and that accepts time deposits Types of loans: Secured loan Mortgage loan Unsecured loan Personal loans lines of credit

Banking in Pakistan:
First formally started during the period of British. Producing only Agricultural raw material. 487 offices of Schedules Banks. The Reserve Bank of India should continue to function in Pakistan until 30th September 1948. By June 30 1948 NO of offices of schedule Banks Decline from 487 to 195. First bank of Pakistan founded on July 1, 1948. First Note was issued (RS. 5,10,100) in October 1948.

Role of Commercial Banks in the Economic Development of Pakistan

Saving mobilization Financing development project Facilitating trade activities Creating climate for capital formation Helping SBP in achieving monetary policies Assisting in the development Provision of agency services Making capital available for investment Profit, sharing scheme Provision of Qarze Hasna Export promotion cell

Practical Study of the Organization

History of the Organization

Incorporated by the Adamjee Group on July 9, 1947, under the Indian Companies Act, VII of 1913 as a limited company. Nationalized in 1974 during the government of Zulfikar Ali Bhutto. Was the first bank to be privatized in 1991. On of the largest bank by market share 18%.

Practical Study of the Organization with respect to the Issue

Role of Muslim Commercial Bank in the Economic Development of Pakistan:
Capital Accumulation or Formation Mobilization of Savings Availability of Funds Implementation of Modern Technology Development of Agriculture Sector Development of Industrial Sector Creators and Distributors of Money

SWOT analysis
Strength: Well established bank Largest private bank in Pakistan Largest ATM network in the country Weakness: It is not market leader as HBL and NBP The overseas branch network of MCB is limited Employees at branch level are not properly motivated.

SWOT analysis
Opportunities: debit card system Fully online System Threats: Change in interest rate from SBP Economic Conditions

Recommendations
Informal meeting arrangements with employees. Should give certain percentage of shares to employees. Culture of encouraging new ideas. Proper channel for customers

Conclusion
A bank is a financial institution and a financial intermediary. Back bone for a country. MCB is one of the largest banks of Pakistan. MCB playing an important role in the developing economy of Pakistan. Still some weaknesses in its system.