How Credit Cards Works?
Credit cards work by allowing cardholders to borrow money from a financial institution, usually a bank, to make purchases or pay for services. When you use a credit card, you are essentially taking out a loan from the issuer of the card. Here’s how it typically works: You apply for a credit card and the […]
What is ECIB? What are the Benefits of ECIB?
ECIB stands for Electronic Credit Information Bureau, which is a database maintained by the State Bank of Pakistan (SBP) that contains credit information on borrowers. The purpose of the ECIB is to provide a centralized source of information on the creditworthiness of borrowers to help financial institutions make more informed lending decisions. The ECIB contains […]
What is Hawala & Hundi System?
Hawala and hundi are both informal systems of transferring funds used in some parts of the world, including South Asia, the Middle East, and Africa. They are both based on trust networks and operate outside of the formal banking system. Hawala is a system of money transfer that originated in the Middle East and is […]
Money Laundering Negative Impacts on Banking Sector in Pakistan
Money laundering can have significant negative impacts on the banking sector in Pakistan. Banks and other financial institutions are often the primary targets for money launderers, who use their services to move and conceal illicit funds. As a result, the banking sector in Pakistan can be exposed to a range of risks, including legal and […]
What is Money Laundering ?
Money laundering is the process of disguising the proceeds of illegal activity as legitimate funds. It involves taking money that was earned through criminal activities, such as drug trafficking, corruption, or fraud, and making it appear as though it was obtained through legal means. The process of money laundering typically involves three stages: Placement: This […]
What is FATF? How FATF works?
FATF stands for the Financial Action Task Force. It is an intergovernmental organization that was established in 1989 to combat money laundering, terrorist financing, and other related threats to the integrity of the global financial system. The FATF comprises 39 member countries and two regional organizations, and it works to develop and promote policies and […]
The Banking System of the World
The banking system of the world is a complex network of financial institutions that provide a range of services, including accepting deposits, lending money, and facilitating transactions. The global banking system is crucial to the functioning of the global economy, as it enables individuals, businesses, and governments to access the capital they need to grow, […]
How Banking System Work in Pakistan
The banking system in Pakistan is an essential component of the country’s economy, providing a wide range of financial services to individuals, businesses, and government entities. This essay will provide an overview of how the banking system works in Pakistan, including its structure, functions, and regulations. Structure of the Banking System in Pakistan The banking […]
Banking System in Pakistan
Pakistan’s banking system is a vital component of the country’s economy. It plays a crucial role in mobilizing savings, facilitating investments, and providing financial services to individuals and businesses. In this essay, we will explore the key features of Pakistan’s banking system, its history, regulatory framework, and challenges. History of Banking in Pakistan: Banking in […]
Islamic Banking and Conventional Banking in Pakistan
Islamic banking and conventional banking are two different systems that operate in Pakistan. While both offer financial services, they have distinct differences in their principles, practices, and operations. In this essay, we will explore the key differences between Islamic and conventional banking in Pakistan and their impact on the banking industry. Islamic Banking in Pakistan: […]