Pakistan : Financial Sector Assessment
This report summarizes the main findings and policy recommendations within the context of the Financial Sector Assessment Program (FSAP). Considerable progress has been made in macroeconomic stabilization. Real GDP growth has progressively strengthened, inflation has been subdued, and the overall fi...
| Main Author: | |
|---|---|
| Format: | Financial Sector Assessment Program (FSAP) |
| Language: | English en_US |
| Published: |
Washington, DC
2012
|
| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/2005/03/5704164/pakistan-financial-sector-assessment http://hdl.handle.net/10986/8529 |
| id |
okr-10986-8529 |
|---|---|
| recordtype |
oai_dc |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English en_US |
| topic |
ACCOUNTING AUDITING AUDITS AUTONOMY BALANCE SHEETS BANK CREDIT BANK LENDING BANK NEGARA MALAYSIA BANK OPERATIONS BANK SOLVENCY BANKING SECTOR BANKING SUPERVISION BANKING SYSTEM BANKRUPTCY BANKS CAPITAL ACCUMULATION CAPITAL ADEQUACY CAPITAL CONTROLS CAPITAL MARKETS CAPITAL REQUIREMENTS CENTRAL BANK CHECK CLEARING COLLATERAL COMMERCIAL BANKS CONSOLIDATED SUPERVISION CONSOLIDATION CONTRACT ENFORCEMENT CORPORATE GOVERNANCE CORPORATE SECTOR CORRUPTION CURRENT ACCOUNT DEBT DEBT RESTRUCTURING DEVELOPMENT FINANCE DEVELOPMENT FINANCE INSTITUTIONS DISCLOSURE DISTRESSED BANKS DOMESTIC LIQUIDITY ECONOMIC GROWTH EMPIRICAL RESEARCH EXCESS LIQUIDITY EXPOSURE FINANCE COMPANIES FINANCIAL DISCIPLINE FINANCIAL INSTITUTIONS FINANCIAL REPORTING FINANCIAL REQUIREMENTS FINANCIAL SECTOR FINANCIAL SERVICES FINANCIAL SYSTEM FINANCIAL SYSTEMS FOREIGN EXCHANGE GROSS SETTLEMENT SYSTEM GUIDELINES HOUSING HOUSING FINANCE INCOME INFLATION INSIDER TRADING INSOLVENCY INSTITUTIONAL INVESTORS INSURANCE INSURANCE COMPANIES INSURANCE INDUSTRY INSURERS INTEGRITY INTEREST INCOME INTEREST RATE INTEREST RATE CAPS INTEREST RATES INTERNATIONAL ACCOUNTING STANDARDS INVESTMENT BANKS ISLAMIC BANKING ISLAMIC FINANCE JURISDICTION LAWS LEASING LEASING COMPANIES LEGAL FRAMEWORK LEGAL PROVISIONS LEGISLATION LEGISLATIVE FRAMEWORK LIQUIDATION LIQUIDITY MACROECONOMIC STABILIZATION MARKET RISK MATURITY MERGERS MICROFINANCE MONEY LAUNDERING MORTGAGE LENDING MUTUAL FUNDS NATIONALIZATION NATIONALIZED BANKS NET INTEREST MARGIN NET SETTLEMENT NETTING NONBANK FINANCIAL INSTITUTIONS PAYMENT SYSTEMS PENSION PLANS PENSIONS POLITICAL INTERFERENCE PORTFOLIOS PRIVATE BANKS PRIVATE SECTOR PRIVATIZATION PROFITABILITY PRUDENTIAL REGULATIONS PUBLIC BANKS PUBLIC DEBT REAL TIME GROSS SETTLEMENT REGULATORY ENVIRONMENT REGULATORY FRAMEWORK RETAINED EARNINGS RISK MANAGEMENT RTGS SAVINGS SAVINGS SCHEMES SECURITIES SECURITIES MARKETS SETTLEMENT SHAREHOLDERS SPECIALIZED BANKS STATE BANK OF PAKISTAN STATE OWNERSHIP STOCK EXCHANGES STOCK MARKETS SUPERVISORY FRAMEWORK TRANSPARENCY VULNERABILITY WARRANTS WORKING CAPITAL |
| spellingShingle |
ACCOUNTING AUDITING AUDITS AUTONOMY BALANCE SHEETS BANK CREDIT BANK LENDING BANK NEGARA MALAYSIA BANK OPERATIONS BANK SOLVENCY BANKING SECTOR BANKING SUPERVISION BANKING SYSTEM BANKRUPTCY BANKS CAPITAL ACCUMULATION CAPITAL ADEQUACY CAPITAL CONTROLS CAPITAL MARKETS CAPITAL REQUIREMENTS CENTRAL BANK CHECK CLEARING COLLATERAL COMMERCIAL BANKS CONSOLIDATED SUPERVISION CONSOLIDATION CONTRACT ENFORCEMENT CORPORATE GOVERNANCE CORPORATE SECTOR CORRUPTION CURRENT ACCOUNT DEBT DEBT RESTRUCTURING DEVELOPMENT FINANCE DEVELOPMENT FINANCE INSTITUTIONS DISCLOSURE DISTRESSED BANKS DOMESTIC LIQUIDITY ECONOMIC GROWTH EMPIRICAL RESEARCH EXCESS LIQUIDITY EXPOSURE FINANCE COMPANIES FINANCIAL DISCIPLINE FINANCIAL INSTITUTIONS FINANCIAL REPORTING FINANCIAL REQUIREMENTS FINANCIAL SECTOR FINANCIAL SERVICES FINANCIAL SYSTEM FINANCIAL SYSTEMS FOREIGN EXCHANGE GROSS SETTLEMENT SYSTEM GUIDELINES HOUSING HOUSING FINANCE INCOME INFLATION INSIDER TRADING INSOLVENCY INSTITUTIONAL INVESTORS INSURANCE INSURANCE COMPANIES INSURANCE INDUSTRY INSURERS INTEGRITY INTEREST INCOME INTEREST RATE INTEREST RATE CAPS INTEREST RATES INTERNATIONAL ACCOUNTING STANDARDS INVESTMENT BANKS ISLAMIC BANKING ISLAMIC FINANCE JURISDICTION LAWS LEASING LEASING COMPANIES LEGAL FRAMEWORK LEGAL PROVISIONS LEGISLATION LEGISLATIVE FRAMEWORK LIQUIDATION LIQUIDITY MACROECONOMIC STABILIZATION MARKET RISK MATURITY MERGERS MICROFINANCE MONEY LAUNDERING MORTGAGE LENDING MUTUAL FUNDS NATIONALIZATION NATIONALIZED BANKS NET INTEREST MARGIN NET SETTLEMENT NETTING NONBANK FINANCIAL INSTITUTIONS PAYMENT SYSTEMS PENSION PLANS PENSIONS POLITICAL INTERFERENCE PORTFOLIOS PRIVATE BANKS PRIVATE SECTOR PRIVATIZATION PROFITABILITY PRUDENTIAL REGULATIONS PUBLIC BANKS PUBLIC DEBT REAL TIME GROSS SETTLEMENT REGULATORY ENVIRONMENT REGULATORY FRAMEWORK RETAINED EARNINGS RISK MANAGEMENT RTGS SAVINGS SAVINGS SCHEMES SECURITIES SECURITIES MARKETS SETTLEMENT SHAREHOLDERS SPECIALIZED BANKS STATE BANK OF PAKISTAN STATE OWNERSHIP STOCK EXCHANGES STOCK MARKETS SUPERVISORY FRAMEWORK TRANSPARENCY VULNERABILITY WARRANTS WORKING CAPITAL World Bank Pakistan : Financial Sector Assessment |
| geographic_facet |
South Asia Asia South Asia Pakistan |
| description |
This report summarizes the main findings and policy recommendations within the context of the Financial Sector Assessment Program (FSAP). Considerable progress has been made in macroeconomic stabilization. Real GDP growth has progressively strengthened, inflation has been subdued, and the overall fiscal deficit and public debt, brought down markedly. However, while macroeconomic stabilization has helped limit vulnerabilities, and improve performance in the financial sector, the outlook remains subject to a number of risks, conducive to future credit quality problems. In addition, a widely anticipated rise in interest rates, and tighter liquidity conditions could adversely impact banks' balance sheets. Finally, a change in the domestic or international political environment, could lead to a drying of remittances, which have been unusually high in recent years. Moreover, to consolidate recent structural reforms and protect the system from future policy reversals, the process of privatization and legal reforms needs to continue. The reform process is not equally advanced across all segments of the financial sector. Insurance penetration is very low relative to other countries at Pakistan's income level, reflecting a number of factors, including a history of nationalization and instability, and weak consumer protection and awareness. And, while the securities markets have benefited from recent reforms, a tradition of highly leveraged, speculative trading through the carry over transactions (COT) or "badla" system, coupled with weak supervision of market intermediaries, pose potential systemic risks. Finally, issues regarding the sustainability and oversight of pension systems need to be addressed. Priority recommendations suggest a comprehensive legal and regulatory framework for private occupational and personal pensions, needs to be established, and compliance overseen by the Securities and Exchange Commission of Pakistan (SECP). Reliable data should be collected, including accurate projections on civil service and the Employees Old Age Benefits Institution (EOBI) schemes, to formulate the appropriate reforms that would ensure fiscal sustainability, and long-term balance. |
| format |
Economic & Sector Work :: Financial Sector Assessment Program (FSAP) |
| author |
World Bank |
| author_facet |
World Bank |
| author_sort |
World Bank |
| title |
Pakistan : Financial Sector Assessment |
| title_short |
Pakistan : Financial Sector Assessment |
| title_full |
Pakistan : Financial Sector Assessment |
| title_fullStr |
Pakistan : Financial Sector Assessment |
| title_full_unstemmed |
Pakistan : Financial Sector Assessment |
| title_sort |
pakistan : financial sector assessment |
| publisher |
Washington, DC |
| publishDate |
2012 |
| url |
http://documents.worldbank.org/curated/en/2005/03/5704164/pakistan-financial-sector-assessment http://hdl.handle.net/10986/8529 |
| _version_ |
1764404879862792192 |
| spelling |
okr-10986-85292021-04-23T14:02:39Z Pakistan : Financial Sector Assessment World Bank ACCOUNTING AUDITING AUDITS AUTONOMY BALANCE SHEETS BANK CREDIT BANK LENDING BANK NEGARA MALAYSIA BANK OPERATIONS BANK SOLVENCY BANKING SECTOR BANKING SUPERVISION BANKING SYSTEM BANKRUPTCY BANKS CAPITAL ACCUMULATION CAPITAL ADEQUACY CAPITAL CONTROLS CAPITAL MARKETS CAPITAL REQUIREMENTS CENTRAL BANK CHECK CLEARING COLLATERAL COMMERCIAL BANKS CONSOLIDATED SUPERVISION CONSOLIDATION CONTRACT ENFORCEMENT CORPORATE GOVERNANCE CORPORATE SECTOR CORRUPTION CURRENT ACCOUNT DEBT DEBT RESTRUCTURING DEVELOPMENT FINANCE DEVELOPMENT FINANCE INSTITUTIONS DISCLOSURE DISTRESSED BANKS DOMESTIC LIQUIDITY ECONOMIC GROWTH EMPIRICAL RESEARCH EXCESS LIQUIDITY EXPOSURE FINANCE COMPANIES FINANCIAL DISCIPLINE FINANCIAL INSTITUTIONS FINANCIAL REPORTING FINANCIAL REQUIREMENTS FINANCIAL SECTOR FINANCIAL SERVICES FINANCIAL SYSTEM FINANCIAL SYSTEMS FOREIGN EXCHANGE GROSS SETTLEMENT SYSTEM GUIDELINES HOUSING HOUSING FINANCE INCOME INFLATION INSIDER TRADING INSOLVENCY INSTITUTIONAL INVESTORS INSURANCE INSURANCE COMPANIES INSURANCE INDUSTRY INSURERS INTEGRITY INTEREST INCOME INTEREST RATE INTEREST RATE CAPS INTEREST RATES INTERNATIONAL ACCOUNTING STANDARDS INVESTMENT BANKS ISLAMIC BANKING ISLAMIC FINANCE JURISDICTION LAWS LEASING LEASING COMPANIES LEGAL FRAMEWORK LEGAL PROVISIONS LEGISLATION LEGISLATIVE FRAMEWORK LIQUIDATION LIQUIDITY MACROECONOMIC STABILIZATION MARKET RISK MATURITY MERGERS MICROFINANCE MONEY LAUNDERING MORTGAGE LENDING MUTUAL FUNDS NATIONALIZATION NATIONALIZED BANKS NET INTEREST MARGIN NET SETTLEMENT NETTING NONBANK FINANCIAL INSTITUTIONS PAYMENT SYSTEMS PENSION PLANS PENSIONS POLITICAL INTERFERENCE PORTFOLIOS PRIVATE BANKS PRIVATE SECTOR PRIVATIZATION PROFITABILITY PRUDENTIAL REGULATIONS PUBLIC BANKS PUBLIC DEBT REAL TIME GROSS SETTLEMENT REGULATORY ENVIRONMENT REGULATORY FRAMEWORK RETAINED EARNINGS RISK MANAGEMENT RTGS SAVINGS SAVINGS SCHEMES SECURITIES SECURITIES MARKETS SETTLEMENT SHAREHOLDERS SPECIALIZED BANKS STATE BANK OF PAKISTAN STATE OWNERSHIP STOCK EXCHANGES STOCK MARKETS SUPERVISORY FRAMEWORK TRANSPARENCY VULNERABILITY WARRANTS WORKING CAPITAL This report summarizes the main findings and policy recommendations within the context of the Financial Sector Assessment Program (FSAP). Considerable progress has been made in macroeconomic stabilization. Real GDP growth has progressively strengthened, inflation has been subdued, and the overall fiscal deficit and public debt, brought down markedly. However, while macroeconomic stabilization has helped limit vulnerabilities, and improve performance in the financial sector, the outlook remains subject to a number of risks, conducive to future credit quality problems. In addition, a widely anticipated rise in interest rates, and tighter liquidity conditions could adversely impact banks' balance sheets. Finally, a change in the domestic or international political environment, could lead to a drying of remittances, which have been unusually high in recent years. Moreover, to consolidate recent structural reforms and protect the system from future policy reversals, the process of privatization and legal reforms needs to continue. The reform process is not equally advanced across all segments of the financial sector. Insurance penetration is very low relative to other countries at Pakistan's income level, reflecting a number of factors, including a history of nationalization and instability, and weak consumer protection and awareness. And, while the securities markets have benefited from recent reforms, a tradition of highly leveraged, speculative trading through the carry over transactions (COT) or "badla" system, coupled with weak supervision of market intermediaries, pose potential systemic risks. Finally, issues regarding the sustainability and oversight of pension systems need to be addressed. Priority recommendations suggest a comprehensive legal and regulatory framework for private occupational and personal pensions, needs to be established, and compliance overseen by the Securities and Exchange Commission of Pakistan (SECP). Reliable data should be collected, including accurate projections on civil service and the Employees Old Age Benefits Institution (EOBI) schemes, to formulate the appropriate reforms that would ensure fiscal sustainability, and long-term balance. 2012-06-20T15:54:40Z 2012-06-20T15:54:40Z 2005-03 http://documents.worldbank.org/curated/en/2005/03/5704164/pakistan-financial-sector-assessment http://hdl.handle.net/10986/8529 English en_US CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank Washington, DC Economic & Sector Work :: Financial Sector Assessment Program (FSAP) Economic & Sector Work South Asia Asia South Asia Pakistan |