Banking has huge potential for further investment: Salim Raza

Posted on May 31, 2009

KARACHI: Governor of State Bank of Pakistan (SBP), Syed Salim Raza, has said that Pakistan”s banking system has great potential for further investment. He was speaking at a ceremony held here for the launching of Silkbank Limited, formerly Saudi Pak Commercial Bank Limited, says a SBP statement. Raza said the performance of country”s financial sector, which is largely dominated by banks, has been outstanding throughout the current economic situation. He stated that the banking sector has over the years nurtured itself in a way that it is able to withstand some of the shocks it has faced in the last 18 months or so. ”The banking system is on strong footing and has long term potential, a feature which has served to attract a substantial amount of Foreign Direct Investment (FDI) in the sector, with established global financial institutions now active participants in the domestic financial sector,” the Governor SBP said and added that the banking industry is well-governed and has witnessed outstanding financial performance during the last few years. ”With strong regulatory oversight, there has been a significant enhancement of capital and risk-weighted capital adequacy,” he said and pointed out that stringent loan provisioning requirement has built sufficient reserves against the Non Performing Loans” (NPLs”) portfolio. Raza said that State Bank always encourages customer”s focus and service standards and added: ”we have no doubts in the ability of the management of Silkbank in delivering high levels of service through innovative products and a pro-active service attitude.”

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