Journal of Bankers

7232019 Journal of Bankers

httpslidepdfcomreaderfulljournal-of-bankers 148

$

euro

PKRpound

MICRO SMALL amp

MEDIUM

ENTERPRISESan engine of growth amp prosperity

Economic Growth in Pakistan

Need for Vast Spread of ATMs

in Pakstan

Private Equity Investments

On the Horizon of Pakistanrsquos Financial

Landscape

Money Laundering amp Terrorist

Financing

AprilJune 2015 Volume 82 | Issue 2



April and October


httpslidepdfcomreaderfulljournal-of-bankers 348 Journal of The Institute of Bankers Pakistan 1

editorial

Sirajuddin AzizEditor-in-Chief

hat is an organizationrsquos reputation worth The answer is simple everything

The results of a study by the WorldEconomic Forum reveal that on average more than 25 percentof an organizationrsquos market value is a result of its reputation An organizationrsquos reputation is what determines its success When tarnished it is also what determines organizationalfailures

One of the greatest lessons that the banking industrylearned from the global financial crises of 2008 is that reputa-tional risk is as important as the more conventional bankingrisks such as market risk credit risk liquidity risk and opera-tional risk Post financial crises reputation and conduct riskshave emerged as high importance buzzwords on bankersrsquoradars

A reputation risk that is not timely and effectively managedcan escalate into a major strategic crisis at an alarmingly fastpace The cost of poor conduct is high not just in terms of

legal repercussions but also in terms of the reputationalerosion and the ensuing loss of business

As a consequence of the many financial scandals thatemerged during the financial crises banking regulatory authori-ties introduced stringent preventative regulation with particularfocus on ethical aspects of banking service delivery and opera-tions This paradigm shift towards increased regulation isenhancing banking vigilance controls and compliance Howev-er in some instances stricter regulation alone does not remedi-ally address the cause of improper unethical conduct

Simply put this popular buzzword lsquoconduct riskrsquo is the

reputational risk that the organization faces from its staff actingunprofessionally unethically or illegally It refers to risksattached to the way in which an organization and its staffconduct themselves - lsquobehaviorrsquo is the most important elementof conduct risk Due to its complexity conduct risk is not easilymanaged only by rules policies and procedures

Conduct risk emanates from ethically compromised corpo-rate culture and unethical behavior of employees ndash behaviorthat could cause malfunctioning of soundly architectedcontrols The ethics of the individual and the culture within theorganization are both significant influencers of an individualrsquosconduct

Conduct risk is manifest in different forms Conduct riskcan occur in the way clients are served and how well the respon-

sibilities of making profit for onersquos client and generatingprofitresult for the organization are balanced Another formof conduct risk is when employees engage in financial misde-meanors by assisting clients in acquiring financial assets that donot comply with the law Conflict of interest is another form ofmisconduct where personal interests of employees are not inline with the organizational or public interests Market abuse which entails incidents of market manipulation and insidertrading is another form of conduct risk

While it is very important to have the right rules and regula-tions in place their efficacy is compromised if behavioralelements do not complement these compliance directives Thisis why conduct risk needs to managed with caution and requiresthat organizations gauge their ethical culture with the rightmanagement inculcating the ethical culture down the corporateechelons stimulating compliance awareness and improving thecommitment to compliance goals Organizations thereforeneed to lay emphasis upon behavioral aspects and be able tomeasure them in order to proactively improve compliance

The process for mitigating conduct risk is more complexand difficult to define than those of the more technical risksthat the financial sector faces The managements of organiza-tions need to evaluate the companyrsquos values and objectives inorder to frame lsquocustomer outcomesrsquo that they need to deliverOnce these outcomes are defined the management shouldensure alignment of corporate strategy with these fair customeroutcomes The next step requires ensuring that organization-albusiness processes are optimized to deliver fair outcomes tocustomers This also means ensuring that a conducive culture isin place within the organization to facilitate employees toachieve the requisite results

A lsquorightrsquo corporate culture is one which puts customers andmarket integrity at the heart of the organizationrsquos business Thiscan be promoted by an ethically conscious management articu-lating its vision of ethical conduct into easily understoodbusiness practices and implementing these within the organiza-tion This should be followed byreinforcing desirable behaviorsthrough performance managementand rewards

A management team that focus-es upon organizational values whileremaining committed to delivering

fair value to customers can generatesustainable reputational benefits forthe organization

w

ldquoConduct Risk ndash The

New Buzz Word in Banking Regulationrdquo





$

euro

PKRpound

The Contributors contents

Journal of The Institute of Bankers Pakistan 3

COVER STORY 06

Cover Story

Micro Small amp MediumEnterprises An Engine of Growth amp

Prosperity

06

Global

Perspective

Why was Japan soUnsuccessful in SolvingDeflation Over the PastTwo Decades

08

Money Laundering amp Terrorist FinancingUnderstanding the Trends amp Typologies

12

Risk management andcash-related risksGeneral points An

analytical model

16

15

Economic Growth inPakistan

22

Need for Vast Spread of ATMs in Pakistan

26

Marketing at Banks28

Private EquityInvestments ndash On the

Horizon of Pakistanrsquos

Financial Landscape

32

Commercial BankingProblems amp Solutions

36

Banking

MICRO SMALL

amp MEDIUMENTERPRISESan engine of growth amp prosperi ty

Chartered Banker Professional Standerd Board

Dr Ayesha Noor is a PhD (Finance)

MS (Finance) MBA (Finance) MSC(Economics) and BCom qualifiedscholar

Dr S Sabir Ali Jaffery is MBA (IBA- Gold Medalist) MPhil (KASBIT -Gold Medalist) PhD (BusinessManagement) a veteran banker of morethan fifty years standing with interna-

tional exposure as Country General Manager and a versatile academic Professor teaching MBAs andMComs at different universities

Asif Ishaq is a Risk Management with over 7 years of work experi-ence He is an MSC (Intl Eco ampFinance) MBA (Finance) Bs(Com-puter Sceince) and JAIBP qualifiedexpert

Muhammad Subtain Raza is a freelancer associated with National Bankof Pakistan with expertise in credit and AML amp CFT practices Currently he is

focusing on AMLCFT measures incontext of Pakistan He is a Doctoral scholar withMBA (HRM) MSc (Hons) and Banking Junior Associateship from IBP

Helena Tejero is a business journalist

Mohammed Arifeen has a diverseexperience of 47 years in ResearchPlanning Forecasting TeachingHuman Resource Market Surveys etcHe is currently a Freelance Research

Content Writer on Banking Education Economicsand Business Matters He is MA Economics fromDhaka University

Ghalib Nishtar is the foundingpresident of KhushhalibankPakistanrsquos largest microfinancebank He has over 30 years ofmanagement experience commencing

with Bank of Ameri ca in 82rsquo and is the recipientSitara-i-Imtiaz one of Pakistanrsquos highest Presidential

civil awards

Zulfiqar Haider Bhatti is a MS(MPhil) Banking amp FinancialEconomics MCom AIBP Associateof Chartered Institute of Bankers andCIMA Advance Diploma in Manage-

ment Accounting qualified banker

Dr Salman Sheikh is currentlypursuing PhD in Economics and hasdone MS in Finance He is a knownauthor with 11 indexed research paperspublished in locally and abroad

journals along with more than 150 research articlespublished in more than two dozen different magazines worldwide


httpslidepdfcomreaderfulljournal-of-bankers 648 Journal of The Institute of Bankers Pakistan4

Published by The Institute of Bankers Pakistan

Moulvi Tamizuddin Khan Road

Karachi 74200 Pakistan

Tel +92 (21) 3568 0783

Fax +92 (21) 3568 3805wwwibporgpk

publicationsibporgpk

Editor-in-ChiefSirajuddin Aziz

Deputy Editor-in-ChiefRizwan Nizami

PublicationsFizza Rizvi


AdvertisingMuhammad Akram

+92 (21) 3562 1339 35277511

makramibporgpk

DesignJahangir Ishaq

Potential contributors are requested

to contact the Publications Manager

on the email address above or write to

IBP at its mailing address

Copyright

All rights reserved The material appearing

in this journal may not be reproduced in

any form without prior permission of The

Institute of Bankers Pakistan

General DisclaimerIBP Journal is based on contributions

from individuals and information

obtained from local and international

print and electronic media IBP has not

verified this information and no warranty

expressed or implied is made that such

information is accurate complete or

should be relied upon as such In no

circumstances IBP and its team members

would be liable for any incidental or

consequential damage that may occur

from the use of information contained in

IBP publication(s)

The Institute of

Bankers Pakistan

Humor and Quotes

40

Book Review

Standard Bearer 42

Contribution of Zakat inSocio - EconomicDevelopment in Pakistan

38

Islamic Banking

38





$

euro

poundPKR

MICRO SMALL amp

MEDIUM ENTERPRISESan engine of growth amp prosperi ty

Micro Small and Medium Enterprises (MSMErsquos) account for 997 of

al l enterprises in the world MSMErsquos have a signif icant role to play in

boosting the economic growth poverty reduction and social inclusion

across the globe

By M Ghalib Nishtar

COVER STORY

Journal of The Institute of Bankers Pakistan6



According to a

World Bank study

MSMErsquos in Pakistan

account for 30 of

GDP and contrib-

ute to 25 of

export earnings

SMErsquos are labor intensivegenerating jobs therebyincreasing the lsquolsquoreal incomeand standard of living of

many people In this way they canincrease the social and economic participation of women youth and minoritiesrdquoMSMErsquos employ 78 of the labor force in

low income countries and 66 of thelabor force in high income countriesMSMErsquos act as a lsquouseful bridge headbetween the informal economy of familyenterprise and the formalized corporatesectorrsquo

All over the world half to two-thirdof all businesses are MSMErsquos and in manyregions this proportion is much higherMSMErsquos are capable of creating jobs withleast amount of capital and in dispersed

locations which makes MSMErsquos attractiveto policy makers However they remain asa heterogeneous group in different organ-izational structure ranging from proprie-torship to corporate engages in factoriesto service organizational activities and with various definitions in differentcountries and in some countries theydiffer from industry to industry

e heterogeneous nature and smallsize needs adequate support from organ-ized intermediaries ese intermediaries

exist in every country in different formsInternational Finance Corporation (IFC)in 2010 revealed that an estimated50-60 of MSMErsquos on a global level areeither under-served or completelyun-served

Financial institutions globally areconsidering MSME sector as an opportu-nity to capitalize and earn significantreturn on investment (ROI) Specificallyin the emerging markets the banksfinan-

cial institutions are looking to tap theun-served needs in this sector Banksaround the world are looking to emergingmarkets for new growth opportunities

For example in a recent publicatione State of Global Banking - In Searchof Sustainable Model according toMckinsey estimated that 60 of globalbanking revenue growth from 2010 to2020 will come from emerging markets Within emerging markets MSME isunder served segment e analysis shows

that formal MSMErsquos are more common inhigh ndashincome economies but in low andmiddle ndashincome economies MSMEdensity is rising at a faster pace eopportunity for banks to serve MSMErsquosin emerging markets is large In 2010banking revenue from MSMErsquos in emerg-ing markets totaled $150 billion or onesixth of all emerging market bankingrevenues By 2015 it is estimated thisfigure will grow by around 20 percent perannum to approximately $367 billion

According to a World Bank studyMSMErsquos in Pakistan account for 30 ofGDP and contribute to 25 of exportearnings According to Gallup survey in2004 MSME in Pakistan employed 80of the non-agriculture labor force As thesector moves towards achieving growthand sustainability through greater market

segmentation and product diversificationenterprise lending has become an increas-ingly important opportunity for microfi-nance providers (MFPrsquos)

e MSME sector of Pakistan isheterogeneous dispersed and mostlyunorganized It includes diverse types of production units ranging from tradition-al cras to highndashtech industries MSMErsquosin Pakistan account for 98 of alleconomic establishments According toestimates there are 38 million MSMErsquos

in Pakistan ese MSMErsquos are concen-trated in the trade services and manufac-turing sectors

IFCs data shows that in Pakistan themicro-enterprises consist of 99 of totalMSMErsquos Unlike SMEs which operatesmostly in manufacturing and servicessectors micro-enterprises are involved primarily in trade-related business Withmicro enterprises residing at pyramidsbase microfinance providers are well

placed to meet their funding needs

While mainstreaming MSMErsquos tooperate at optimal levels will requiredeveloping a conducing eco-system butaccess to finance remains a key sector

Since this segment of the marketholds great promise for the countryUnited States Agency for InternationalDevelopment (USAID) Pakistan hasinked an 8 year tenure US-PakistanPartnership for Access to Credit Agree-

ment with Khushhali Bank to provideaccess to formal financing facilities forMSMEs and facilitate broad-basedeconomic growth e dominant aim isto encourage lending to small andmedium enterprises (SMEs) in PakistanOf the $60 million $121 million isreserved for the private education sectoris partnership will serve to stimulatetargeted domestic commercially viableinvestments by mitigating some of thecredit risk factors that prevent access to

credit by small businesses across thecountry e partnership will supportinclusive growth and employment acrossall sectors




The term lost decade refers to the idle period of Japanese economy where the economic flow became

stagnant for more than 10 years From 1993 to 2003 the average growth rate was recorded at just

above 1 The inflation rate in terms of GDP deflator or Consumer Price Index (CPI) had been negative

since 1998 Till the end of 2003 the CPI price level was brought down to 3 by deflation which is

even below than that during the 1997 level whereas in the same period there was an increase of 12

in the United States CPI index From 1997 to 2002 because of deflation along with virtually zero growth

the nominal GDP of Japan reduced by almost 4 whereas during the same time period United States

witnessed an increase of 25 in the nominal GDP There were several problems that had been high-

lighted as contributing factors in explaining Japanrsquos ldquolost decaderdquo

By Asif Ishaq


GLOBAL PERSPECTIVE



he poor outcome in the earlystage of Japanese stagflation hasbeen linked with the problemsthat occurred due to thenon-performing loans and the

asset burst bubble By the end of 2003 thestock index and the land prices dropped

by one-third of their high prices that wererecorded in 1989-1991e banking crisisof 1997-1998 was a result of the non-per-forming loan problem and the slow policyresponses e increment in the consump-tion tax rate and the April 1997rsquos withdrawal of income tax cut is cited as amistake of the fiscal policy which hasbrought the economy in trouble

From 1985 to 1990 it was quite clearthat Japans economy was experiencing a

bubble e land prices and stock pricesindex grew very sharply from 1983 to1989 Nikkei 225 rose from ten thousandin 1983 to forty thousand in 1989Growth rate of economy was reaching 5compared to the average growth rate of4 from 1975 to 1989 During thisbubble period CPI inflation was low

whereas asset prices gota l m o s tt r i p l e d

within few years In 1989 themonetary policy was finally tightenedDiscount rates increased from 25 to325 in May 1989 and then further to425 in December In August 1990 itrose to 6 representing a 350 basis pointincrease in 15 months Regulatory

tightening along with this hike in theinterest rates was also applied forstopping the increasing land priceslimiting the bank landing to real estate projects along with increasing taxes on thecapital gain from investing in land In1990 the stock prices started droppingfrom the very first trading day Till thesummer of 1992 the index had lostaround 60 of its peak level Land pricesalso started trembling in 1991 ebubble was finally busted

From 1992 to 95 Non PerformingLoans (NPLs) problem started getting worse Construction and real estatecompanies were having problems in paying interest on loans as they werebecoming bankrupt e banks in thehope of real estate market rebound-ing soon kept on lending to thecompanies that were not able toservice their debts e banking

problems worsened as no serious measures were taken to address this issue e Japanese economy severely struck withbalance sheet recession and was triggeredby a collapse in land and stock pricescausing the Japanese firms to have negativeequity (Companies assets were worth less

than their liabilities) e authoritiesfailed to deal with the actual causes forthis downfall rather focused on tacklingthe symptoms

In April 1998 when the newlyindependent bank of Japan started itsoperations with new governor and boardmembers hopes were high for positiveoutcomes However aer 5 years thebank not only lost its credibility but alsosuffered loss of confidence e economic

conditions were misjudged by the policyboard members also the governor andfellow board members refused to co-oper-ate with the government and took anindependent view whereas cooperation was seriously required in these times of prevailing economic situations Sincei n d e - pendence and earlyestab- lishment of credibil-i t y were consideredim- portant policy

From 1985 to 1990 it was

quite clear that Japans economy

was experiencing a bubblerdquo




actions became conservative tentativeand lacked boldness and self confidencee restructuring also failed

In February 1999 the zero interestrate policy (ZIRP) got introduced it waslikely to continue as long as the ldquodeflation-

ary concern was dispelledrdquo Unfortunatelyin August 2000 the policy got liedHowever in March 2001 it gotintroduced once again and was to contin-ue till ldquothe inflation rate became stablyabove zerordquo

In October 2003 the conditions wereelaborated even further at this point thenecessary condition in order to get out ofZIRP was that the rate of CPI inflationshould either be zero or above for some

time for a few months or so amp there wasno forecast which would show that theeconomy would fall back to deflationKnowing the fact that at the time whenZIRP got terminated economy was stillsuffering from deflation and that theZIRP had to be re-instated the interestrate hike of August 2000 was clearly amistake Also BOJ lowered the interestrates too little and too late (1991 to1995)

Aer the failure of Zero interest rate policy uantitative easing wasintroduced and from March 2001 to 2006and it was expanded in several steps ldquoInAugust 2001 the amount of BOJ outright purchases of long-term government bonds was raised from 400 billion yen per monthto 600 billion yen per month

At the same time the current accounttarget was raised to 6 trillion yen (or about2 trillion yen excess reserves) which wasfurther increased to 800 billion yen in

December 2001 1 trillion in Feb 2002and then to 12 Trillion in October 2002e current account target was also raisedto 10ndash15 trillion yenrdquo

Although quantitative easing gotexpanded by these steps where theamount for long-term bonds in October2002 stood at 12 trillion from 400 billion yen per month in September 2001deflation became worse indicating thatquantitative easing did not work and it

failed as well e main reason for itsfailure was that when the money supply was increased by the regulatory authori-ties they were of the opinion that this act

will be amplified by the banks and they will start extending loans to corporate andthe other sectors of the economy but thatdid not happen Instead of supporting thestep taken by the regulatory authority thebanks maintained their conservativeapproach towards extending loans and

advances

In order to overcome deflation along with promoting an independent centralbank Inflation targeting was also proposed However the inflation target-ing was opposed by Bank of Japan eeconomists in the Bank argued that ldquotoget out of deflation there were no clearinstruments and a mere announcement without instruments would not convincemarket participants to change their

inflation expectationsrdquo Others in theBank on the other hand suggested thatldquothe commitment to keep the zero interestrate policy until the inflation rate becomesstably above zero has similar effects toinflation targetingrdquo e Policy Boardmembers were cautious had mainlyfollowed the consensus and were unwill-ing to adopt ldquounorthodoxrdquo methods which points towards another reason whythe Bank of Japan failed to overcomedeflation ey made mistakes at a techni-cal level regarding interest rates moneysupply etc

Furthermore analyzing the periodfrom 1997 to 2010 Japanrsquos GDP growthturned negative shrinking the economyitself Japanrsquos government hiked theconsumption tax by two-thirds fromthree percent to five percent in 1997 while slashing personal income taxes byanother 32 percent corporation taxes byanother 38 and inheritance taxes byanother 48 percent In other words from

1997 to 2010 the government slashed progressive and proportional incomecorporation and inheritance taxes bynearly thirteen trillion yen while hikingconsumption taxes by more than sixtrillion yen What can you expect otherthan for consumption to shrink further when a government continues to slashtaxes on richer citizens and larger corpo-rations who spend the smallest portionof their incomes and wealth on consump-tion and continue to hike taxes on poorer

citizens and smaller businesses whospend the largest portion of theirincomes and wealth on consumption What the government did was even

better It curtailed consumption growthaltogether to zero percent and with noannual growth in domestic consumptionsuppliers cut their capital formation bythree percent annually while shrinkingtheir inventories by 48 percent annually

Since consumption capital formationand inventory increase comprised 99 percent of Japanrsquos economy during this period and the latter two are driven byconsumption which was no longergrowing there was no way that Japanrsquoseconomy could grow

From 1992 to 1995 despite weakeconomy the exchange rate kept ongetting appreciated with no apparentmacro-fundamental reasons for it Itmoved to 80 yen per dollar during thespring of 1995 from 100 yen per dollar Atthis stage it was very much required forthe exchange rates to be depreciated forcontrolling the declining situation of theeconomy which was generally avoided

is appreciation in the exchange rateas highlighted by the economists ldquodamp-ened an expectation of early recovery andcontributed to disinflation and thendeflationrdquo

Several debates have been carried outfocusing on what the Bank of Japan couldhave done for preventing deflation tooccur and to get worse In the studies at




From 1992 to 1995

despite the weak

economy the exchangerate kept on getting

appreciated with no

apparent macro-funda-mental reasons for itrdquo

ldquoFederal Reserve Boardrdquo many academicsand policy makers have argued that ldquotheBankrsquos actions were too little amp too late atleast in retrospect in preventing deflationfrom emerging and fighting out ofdeflationrdquo

LESSONS TO BE LEARNT FROM JAPANrsquoS LOST DECADE

bull

bull

bull

bull

bull

In order to avoid a situation like thatof Japan monetary policy is an impor-tant measure It is not just limited tomoney supply and interest rates butthe disposal of failed banks as well asdebtors

e Sooner the better if you cannotavoid the failure Japanrsquos total bad debts

were around 12 Trillion Yen in 1991Since the Ministry of Finance did notdispose the loan they became huge asthe land price collapsed around 100trillion yen in 2003

Aer the crash money should beeased promptly by the central bankBecause the Bank of Japan was unableto stop the bubble and when it burstin January 1990 the bank did notchange the very monetary policy

When the policy got eased in July1991 BOJ was too cautious due tothe fear of another bubble As a resultthe prices of real estates and stocks fellto less than 15 of their peak

Emergency fiscal stimulus wasrepeated by the Japanese governmenttrying to rescue the economy whichresulted only as the vast amount ofgovernment deficit 180 of GDPSince many companies and banks were insolvent the money supplied by

the government was used to make upzombie banks and companies wholooked alive but were dead in reality

For restructuring money supply canhelp whereas interest rate is not veryeffective under deflation In 1999 theinterest was reduced to zero by BOJand that did not improve the ongoingcrisis as the real interest rates werehigh under deflation BOJ began withthe quantitative easing from 2001

policy that supplied large amount ofmoney which decreased the pain ofthe surgery by banks and companiesto restructure themselves

Japanrsquos economy is not doing very wellrecently Since the asset bubble burst ofthe early 1990s the country is suffering aslow growth rate even negative along with the price deflation Economicstatistics remain distressed and above all

the nations mood in terms of both producers as well as consumers has turned pessimistic Some are still of the opinionthat Japan is a high income country whereas others say transition to a neweconomy is getting prepared under arecession and some companies are doing very well We cannot ignore the fact that Japanese economic performance had beenless than expected in the last decade or soe Japanese monetary authorities havefaced with two basic problems due to therecent history of Japanese monetary policy First Japan was le in a prolongdeflationary environment due to theBOJrsquos policies where lowering theshort-term interest rate remained nolonger efficient and effective as the floorof zero was hit by the policy rate

Second Japanese monetary policy forthe past le the bank with severe credibil-ity problems e public as well as themarkets were unconvinced that thecountryrsquos monetary policy can be commit-

ted to future expansion returning theeconomy to health again Due to thesetwo problems Bank of Japan was present-ed with particular challenges for finding

solution in order to get the economy outof deflation quickly e Bankrsquos decisionof raising the discount rates in May 1989 was criticized as a step taken too late eBankrsquos focus on limiting yen appreciationin the second half of the 1980s accommo-

dated asset inflation and made it difficultto achieve a so landing in 1989 eBank was criticized for overly tight policyin the first half of the 1990s Once policyshied to ease aer 1994 the Bank wascriticized for not more aggressivelyincreasing monetary growth and prevent-ing a slow downward dri in prices overthe decade

e reasons why Japan has beenunsuccessful in solving the problems ofdeflation for the past two decades can besummarized as follows

bull

bull

bull

bull

Lack of politicaleconomic leadership

e policy board members werecautious and mainly followed theconsensus and were unwilling toadopt ldquounorthodoxrdquo methods

ey made mistakes at a technicallevel (regarding interest rates moneysupply etc)

Japan was in a ldquobalance sheetrecessionrdquo and the authorities tackledthe symptoms not the causes




MONEY LAUNDERING amp

TERRORIST FINANCING

Understanding the Trends amp Typologies

Over the last three decades

phenomenal growth of financial

services has been observed dueto advancement in technology

and globalization This growth

has led to increased cross-border

activities to boost up global

financial intermediation But on

the other side this development

has also promoted transnational

organized crimes including

Money Laundering and TerroristFinancing (ML TF) enacted by

underground economies

oney laundering (ML) is defined as the process wherebycriminals attempt to obscure the illegal origin andor illegitimateownership of property and assets that are the results or proceeds

of their criminal activities In Financing of Terrorism (FT) both legitimate

and illegitimate money is characterized by concealment of the origin orintended criminal use of funds e term Terrorist refers to any person whocommits or attempts to commit participates as an accomplice organizes ordirects others or contributes to terrorist acts directly or indirectly

Money laundering and terrorist financing are making global threats tointernational peace and security which could destabilize worldrsquos develop-ment and progress

e United Nations 2000 Convention Against Transnational OrganizedCrime also known as the ldquoPalermo Conventionrdquo defines money launderingas e conversion transfer concealing disguising acquisition or posses-

sion of property associated with illegal origins or intentsacts of criminals

Financial Action Task Force (FATF) has designated the categories ofoffences eg terrorism Illicit trafficking in narcotic drugs amp arms corrup-

By Subtain Raza


GLOBAL PERSPECTIVE



tion and bribery counterfeiting currencysmuggling fraud piracy extortion andinsider trading and market manipulationetc which heavily contribute to MoneyLaundering amp Terrorist Financing

e Difference between Money

Laundering and Terrorist Financing

e fundamental difference betweenterrorist financing and money launderinginvolves the origin of the funds In Terror-ist financing the miscreant uses funds forillegal religious political or specified purposes but the trail of money might notnecessarily come from donations govern-mental covert funds or aid from agenciesTerrorist financing may be supportedboth by legitimate and illegitimate

proceeds Money laundering alwaysinvolves the proceeds of illegal activitye rationale of laundering the money isto enable the money to be used withlawful rights From a technical percep-tion frequent laundering processes usedby terrorists and other criminal organiza-tions are similar Although it would seemcommonsensical that funding fromlegitimate sources does not need to belaundered there is a need for the terroristgroup to obscure the link between it andits genuine funding sources

Terrorists and money launderers usesimilar methodologies to rout theirmoney through various channels to avoiddetection such as placement structur-inglayering and integration the paymentsto avoid reporting and undergroundbanking such as the ancient system ofHawala or Hundi

Stages In Money Laundering amp TerroristFinancing Process

Money laundering amp Terrorist financingoen involves a multifaceted series oftransactions that are usually complicatedto trail Generally three phases of Moneylaundering are involved in this process

Placement

e physical placement or disposal of cashor other assets derived from criminalactivity While using placement mode the

money launderer instills the illegal proceeds into the financial channels orfinancial system e illegal proceeds maybe placed in financial institutions casinosshops and other designated non-financial

businesses both national and internation-al In this stage the transactions may be processed such as Breaking up largeamounts of cash into unidentified sumsand depositing them directly into variousbank accounts Channelizing cash acrossborders to deposit in foreign financial

institutions or to buy high-value goodsmdashsuch as artwork antiques and preciousmetals and stonesmdash that can then beresold for payment by other instrumentseg cheque or bank transfer

Layering

e severance or partitioning the illicit proceeds from their origin by layers offinancial transactions with motives toconceal the source of the proceeds is

particular stage is intended to reshape the proceeds of the crime into another formand creating complex layers of financialtransactions to avoid the audit trailsupply channel and ownership of funds

is stage can involve processes such asFrequently sending wire transfersconverting deposited cash into monetaryinstruments (eg travelerrsquos cheques)reselling high-value goods and prepaidaccessstored value products investing inreal estate and legitimate businessesinjecting money in investments such asstocks bonds or l ife Insurance and maneuvering shell companies or other structuresto obscure the ownership of assets

Integration

Production of apparent legitimacy toillicit proceeds through the re-entry of thefunds into the economy by showing it tobe normal business activities or personaltransactions is stage entails using

laundered proceeds in seemingly normaltransactions to create the perception oflegitimacy e parties involved inlaundering may choose to input the fundsin real estate financial ventures or luxuryassets A successful integration transactionmakes it difficult to distinguish betweenlegal and illegal wealth is stage providesa launderer the opportunity to increase his wealth with the proceeds of crime

Typologies In Money Laundering ampTer-

rorist Financing

Basically Typologies involve the study ofmethodologies techniques and trends ofmoney laundering and terrorist financing

As a series of ML or TF arrangements areconducted repetitively in a similar manneror using the same methods we notify themas a ldquotypologyrdquo e FATF amp APG under-take comprehensive typologies research tobetter understand the money launderingand terrorist financing environment e

following examples taken from APGresearch sheds light on few key moneylaundering and terrorist financing methodstechniques schemes and instruments

Money Exchanges Converting Cash

is typology is being used to aid the process of smuggling to another jurisdic-tion or to exploit low reporting require-ments on currency exchange houses tominimize risk of detection

Use of Couriers for Currency Smuggling

Illegal movement of currency to avoidtransaction cash reporting measures

Smurfing

Using a novel technique involving frequenttransactions (deposits withdrawals transfers)to avoid detection threshold reportingcompulsions

Use of Financial Instruments

Use of credit cards cheques promissorynotes etc to have funds held in a financialinstitution oen in another jurisdiction

Purchase of High Value Commodities

A method to purchase intensive high value products like gems precious metalsetc to mask the ownership or move value without detection and avoid financial

sector AMLCFT measures ndash eg move-ment of diamonds to another jurisdiction(a detailed presentation in HollywoodMovie ldquoe Blood Diamondrdquo)

Investment in Real Estate Race Horsesand Vehicles

Illicit proceeds are invested in high valuenegotiable goods to take advantage of reducedreporting requirements to make the source of proceeds of crime incomprehensible

Mutual Commodity Exchanges

Motive of this methodology is avoidingthe use of money or financial instruments




ldquo Underground banking

systems are being used

to remitt money Various

case studies revealed

the features that most

of money launderers

and terrorist financers

use this mode of money

for remittance because

it is the most confiden-

tial method to move

value without detectionand to obscure the iden-

tity of those controlling

fundsrdquo

ldquoMoney Laundering

and Terrorist

Financing crimes

are emerging

abruptly impacting

potential negative

consequences on

the economic polit-

ical and social pro-gressrdquo

in value transactions to evade financial

sector AMLCFT measures ndash eg a directexchange of heroin for gold bullion

Wire Transfers

is typology is assisted by electronicallytransfers e funds are routed betweenfinancial institutions and oen to another jurisdiction to avoid exposure and confis-cation

Alternative Remittance Channels

Underground banking systems are beingused to remitt money Various case studiesrevealed the features that most of moneylaunderers and terrorist financiers use thismode of money remittance because it isthe most confidential method to move value without detection and to obscure theidentity of those controlling funds esechannels are eye-catching to terroristfinanciers Al Qaeda successfully instigatedits operations because of effective transfersof money by hawalahundialternativeremittances before September 11 2001

Trade-based manipulations

To assist the agenda of money launderingand terrorist financing the malpracticesused by male factors are invoice manipula-tion overunder invoicing and alterationsin trade finance routes and commoditiesto avoid financial transparency laws andregulations

Gambling amp Gaming activities

ese activities involve buying ticketsfrom legitimate players using casino chips

as currency for illicit transactions using

online gambling to obscure the source offunds Most activities are performed incasinos horse racing internet gamblingetc

Exploitation of (NPOs) non-profitorganizations

Terrorist funds and other illegal proceeds may be legitimized by using theshield of (NPOs) non-profit organiza-tions

Investment in Stock Exchanges orCapital markets

ere are motives to avoid exposure of proceeds of crime by purchasing negotia-ble instruments available in capitalmarkets

Intermingling of legal business withillegal activities

To obscure the source of funds this is an

instrumental step by money launderers tocombine the proceeds of crime withlegitimate business monies

The Processes of Money Laundering and Financing of Terrorism

Integration

Layering

Funds moved to other Institutions to obscure origin

Placement

CashAsset deposited into the 1047297nancial ystem

Money Laundering

Proceeds from Criminal ActionsLegitimate Assets or Proceeds from

Criminal Acts

Fund used to aquire legitimate assetsFund distribted to use fund

terrorist activities

Terrorist Financing




Use of FrontShell Companies

Presently launderer and terrorists areusing these bodies to avoid the identity of persons controlling funds and take advan-tage of relatively low reporting require-

ments

Trust Company Service Providers

ese are persons and entities that profes-sionally create administrate or managethe corporate vehicles ese vehicles areused to obstruct the access to peoplecontrolling funds

Use of Trusts

e term trust expresses the legal relation-ship that is accorded by a person (theldquosettlorrdquo) where assets are handed overunder the control of another person (theldquotrusteerdquo) for the benefit of one or morebeneficiaries is mode of involvementevades the identity of persons controllingillicit funds

Use of ldquoGatekeepersrdquo or ProfessionalServices

e involvement of lawyers accountantsbrokers etc with intentions to hide andguard the beneficiaries and the source of

illegitimate funds Alternative Delivery Channels

Exploiting the new payment technologiesfor money laundering and terrorist financ-ing is another typology with impendingthreats Examples include computerATM cards and cell phone-based remit-tance and payment systems

Money Laundering and Terrorist Financ-ing crimes are emerging abruptly impact-

ing potential negative consequences onthe economic political and social progress ere is a dire need for countriesto have more strong anti-money launder-ing policies regulations and independentauthorities to cope with this concernInternationally effectual efforts egcontributions from FATF IMF WB and

UNO have been launched to fight againstMLTF and most of the countries haveshown exceptional cooperation inconnection to devise monitoring andsurveillance systems for financial institu-tions cross border money amp drug

smuggling regulatory measures andinternational cooperation to preventdetect and respond money laundering andterrorist financing

As financial institutions have more diverse products like customer accounts wiretransfers correspondent banking andforeign exchange services etc consequentlythere are more concerns regarding exploita-tions of these entities erefore moredynamic efforts like strengthening theAMLCFT policies reporting officer

designation based on experience and qualifi-cation co-operation with the supervisoryauthority effective tools for customer duediligence rapid monitoring and respondingto suspicious transactions and AMLCFTemployee training program can play theirconsiderable role in combating moneylaundering and terrorist financing




The term risk (from the Italian word risico or rischio which in turn comes from the Classi-

cal Arabic word rizq means what providence holds in store) refers to any contingency

that if it were to materialise would cause harm or loss Risk is a fundamental concept in

any management process today given how closely it is tied to organisationrsquos business

activity This is also true of a central bankrsquos activities Indeed it could be said that no activ-

ity is free of risk Realising this since their inception central banks have developed various

mechanisms to protect against such eventualities gradually giving shape to a modern

proactive and systematic risk-management discipline Risk management today comes

under the umbrella of what is termed corporate governance and it aims to formalise and

consolidate the procedures of identifying assessing responding too and monitoring risks

so as to minimise their impact on operations

By Helena Tejero


GLOBAL PERSPECTIVE



lthough there is no universalconsensus among centralbanks about the range of

possible contingencies two categories areoen distinguished financial risks(market credit and liquidity risks) andoperational risks e former derive from

possible financial events that may have anegative impact on the value of financialassets By contrast operational risks relateto harm caused by inadequate internal processes (or failures) people or systemsor as a result of external events

All central bankrsquos activities can be affectedby operational factors whether internal orexternal and these may translate into aloss One of a central bankrsquos most signifi-cant tasks is cash management is

involves putting cash into circulation andthe withdrawal exchange safekeepingand recycling of legal tender banknotesand coins while ensuring their quality andauthenticity It also entails supervising andmonitoring the economic agents andentities participating in the cash cycle andin cash processing and handling

In 2005 the Banco de Espantildea set up asystem to identify evaluate and adopt thenecessary measures to mitigate operation-al risks and to prioritise resources byestablishing the most suitable policiesmethodologies procedures tools andorganisational structures All the Bankrsquosorganisational areas apply this model in particular the Cash and Issue Depart-ment which is responsible for cashmanagement

i) Functions processes and activities

e starting point for operational riskmanagement systems is an inventory of

the functions processes and activitiesthat each organisational area undertakesand which make up each unitrsquos processmap is preliminary step is necessary inorder to identify the risks to which theexercise of this responsibility is subjectAn example of the main elements of a possible business process description isgiven below

Cash management functions and processes

Cash management is a core activity of anycentral bank and the members of theEuropean System of Central Banks are no

exception e functions of the Bank isspecifically entrusted within this context

bull

bull

bull

bull

bull

bull

bull

Within the huge range of possible organi-sational models to fulfil its role a CashDepartment may be subdivided into thefollowing areas or divisions

bull

bull

bull

bull

bull

In order to control risks appropriatelyeach division implements a series ofmitigating measures which in turn arebacked up by the checks performed by theDepartment responsible for the Bankrsquosinternal controls

A review of the activities performedmakes it possible to identify the number

Executing the countryrsquos issuance policyand decision-making in coordination with the European Central Bank(ECB) on the quantity of banknotes

to manufacture and who is responsiblefor producing them and the general policy of putting banknotes intocirculation and withdrawing them

Managing and controlling the puttinginto circulation of coinage on behalf ofthe State Treasury

Estimating future banknote and coinneeds

Determining the general characteris-tics of automated banknote handling verifying banknote authenticitysorting banknotes by conditiondestroying banknotes unfit to return tocirculation and checking the quality ofthe cash in circulation

Coordinating the application of theanti-counterfeiting strategy

Storing the banknotes in the logisticstock and the Eurosystem strategicstock owned by the ECB and manageinternational shipments

Conducting cash transactions with the public sector financial institutionsand the public

Issue Division which implements thecentral bankrsquos issuance policy

Custody Division which managesdaily operation of putting into circula-tion and withdrawal from circulationof banknotes and coins with privateindividuals and the banking sector

Industry and Technology SupportDivision which supports the divisionslisted above and manages humanresources infrastructure and the equip-ment entrusted to the department

External Relations Division whichcoordinates and manages generalaspects of the departmentrsquos externalactivity and its relationships with cash professionals and

Risk Internal Control and SecurityDivision

Source Banco de Espantildea

Processes description methodology




of processes (not usually less than 20 in aCash Department) covering all therelevant workflows for the execution ofthe tasks entrusted to the department By way of illustration a description of one process-automatic banknote sorting-isdescribed below

ii) Identification of risks

e identification of the inherent risks ofany activity is based on an analysis of the possible contingencies that may affect itsfunctioning is involves studying various scenarios by asking the questionldquowhat ifrdquo For example what wouldhappen if a business process failed or wasinappropriate What would the conse-quences be in economic terms for the

Bankrsquos reputation andor its failure tomeet its objectives What is thelikelihood of this happening

In order to fully identify all the possiblecontingencies the model classifies anumber of scenarios us as well asconsidering the possibility that a processfail it is assessed what would happen ifthere were faults in the systems orinfrastructure internal or externalmalicious acts labour-related incidents ormore extreme events

In the cash management area there is a wide range of possible events such asunder or overestimating the number ofbanknotes to produce faults in banknotehandling machinesmisappropriationof banknoteso c c u p a -t i o n a lacci-

dents during coin handling disastersbefalling the reserve vault or the robberyof a cash-in-transit van

From the foregoing it may be deducedthat the reasons why a risk materialisesmay be external ie beyond the Bankrsquos

direct control such as natural forces oracts or omissions by third parties Forinstance new regulations on banknote usemay have a significant impact on futuredemand which could result in the

number of banknotes to produce beingunderestimated or criminal

organisations may emergethat pose a threat of

largescale theRisks may also


Automatic banknote sorting process

be internal such as the acts or omissionsof staff shortcomings in the design orexecution of processes and systemsmalfunctions

While operational risks are inherent toany activity ie they are always present

organisations have developed relativelyeffective systems to protect against themby addressing their root causes ereforeone of the most important steps in riskmanagement is the identification andimplementation of controls ie specificmeasures adopted with the purpose ofmitigating risk either to avoid an eventrsquosoccurring (frequency) or to reduce theharm it would do if it did ultimately occur(impact) or to act on both aspects For

In 2005 the Banco

de Espantildea set up a

system to identify evaluate

and adopt the necessary meas-

ures to mitigate operational risks

and to prioritise resources by

establishing the most suitable

policies methodologies proce-

dures tools and organisational

structuresrdquo




example to reduce the possible impact oferrors in cash deposits an ldquounprocessedbanknotesrdquo system may be implemented whereby financial institutions expresslyirrevocably and unconditionally waive theright to be present during counting and validation and wholly accept without the

possibility of any claims the count performed by the central bank and thecorresponding debits andor credits tosettle any differences that may potentiallyarise in counting Alternatively to reducethe frequency of possible shipmenttransport-related contingencies a systemof auxiliary deposits could be set up bybringing together a number of creditinstitutions under the management of oneentity that using the services of an agentspecialising in funds transport storage and

handling receives a quantity of banknotesfrom the central bank in the form of adeposit sufficient to meet the needs of thefinancial centre in which it operates

It should be noted that the effectiveness ofthe controls varies according to themoment they are applied their level ofautomation and their scope us thecontrols may be preventive (anticipatingthe risk event to avoid its occurrence or tominimise its impact for example theldquofour eyesrdquo principle) corrective (put intooperation once the event has materialisedso as to minimise its impact such asbusiness continuity plans) or predictive(to predict the occurrence of events suchas the use of statistical models to predictthe future demand for cash) Moreovercontrols may be automatic (for examplebanknote processing machines) or manual(presence of security personnel) or theymay be applied to all operations (verifica-tion of the contents of all the bags ofcoins) or only to a sample (verification of

the contents of a bag selected at random)

iii) Risk assessment

Not all risks are equally important andnot all controls mitigate them in the same way Moreover unlike some other types ofrisks such as financial risks there is nolink between operational risk and profita-bility erefore the ldquoappetiterdquo for opera-tional risk is zero although there may be adegree of tolerance or acceptance of it

erefore the management systemincorporates uniform rating scales for theorganisation as a whole and a tolerance policy in order to determine the relativeimportance of the risks and establish


I m p a c t

Frequency

Risk tolerance matrix

levels of action and thresholds at whichrisks are to be raised to the relevantdecision-making bodies

All the risks are evaluated based on 1)impact or damage they may causendashwhether financial reputational for theBank and or affecting the achievement ofits goals and 2) the frequency with whichthey may arise us for each event identi-fied the following questions are asked i) ifthe event occurs what financial or reputa-tional impact or failure to achieve goalsmay occur-measured qualitatively from 1to 5 where 5 is the maximum-consideringthe effectiveness of the existing controls

and ii) how oen could this risk material-ise measured qualitatively from 1 to 5 where 5 is the most frequent

Risks thus measured are plotted on a RiskTolerance Matrix (see figure below)Operational risks in the green area areconsidered exante tolerable and do notrequire an action plan However businessareas will inform the Bankrsquos Risk Manage-ment Committee of risks in the yellow orred areas and propose mitigationmeasures so that the body can approve oraccept the residual risks

Bearing in mind the financial andreputational impact of many of the

activities associated with cash manage-ment it is logical that on an aggregatescale the operational risk exposure issignificant

is is all so in those cases where thecontrol environment while beingextremely effective at reducing the proba-bility of occurrence to levels close to zerois unable to prevent significant damagebeing caused Imagine for example thatsomeone gained access to the securityfeatures incorporated in banknotes toallow their counterfeiting or that ashipment van was attacked by terrorists orsuffered a serious accident or that the

banknote vault were to flood or have afire or that human capital were lost without an effective succession planAlthough these situations all look highlyunlikely given the control measures in place their occurrence could cause verysignificant losses

iv) Handling and monitoring of risks

However not all risks are high impact orlow probability or have a robust controlenvironment It is therefore important toanalyse possible mitigation strategies and programmes to reduce the severity andfrequency of the contingencies identi-fied




understanding the functions entrustedto the organisation and the activitiesderiving from them

identification of possible eventualitiesaffecting their operations

determining the relative importance ofeach

decision-making on the most effectivemitigation strategies and

ongoing monitoring of both theenvironment in which they operatethe risks and controls and incidentsthat occur both internally and incooperation with other central

banks

For example a natural disaster thatcould render the site holding a portionof the bankrsquos reserves inoperative Toaddress this possible eventualitybusiness continuity plans could bedrawn up to allow the most criticaloperations to be resumed on an alterna-tive sites such as services to creditinstitutions including both lodgementsand withdrawals of banknotes and coins We could also envisage more cash thanrecorded being delivered as a result of

human error and that someone mightsteal the difference In this caseautomated banknote traceability systemscould be used e use of money bagsmarked with bar codes or similar meansof identification would allow theirlocation within the internal distributionsystem to be ascertained at all times iscould also bring other benefits such asbetter control over incomings andoutgoings of money bags

However despite the attention paid torisk mitigation changes can occur in theenvironment and risks may materialise Ifthey do it is important to register the loss

events that occur and quantify theirimpact as well as investigating theirunderlying causes so as to prevent arecurrence where possible It is alsocrucial to compare the informationderived from these facts with the exanterisk identification and assessment in orderto adjust the impact andor frequency ofoccurrence to the reality of the factsEqually it is possible to compare thegoodness of the results of the internalself-assessment with the experience of

other central bank working groupsspecialised in operational risk such as theInternational Operational Risk WorkingGroup of which more than 50 centralbanks are members

us managing risk is not a one-off activi-ty but must be carried out proactively onan ongoing and systematic basis to avoiddaily activities being affected by contin-gencies and enable immediate action to betaken when necessary

Central banks in general and their cashmanagement areas in particular areexposed to significant operational risks

e ldquoappetiterdquo for risk being extremelylimited good practice has been developedfor efficient operational risk managementese practices need to cover at least thefollowing five stages

bull

bull

bull

bull

bull

This article was first published in Billetaria






Banking

ECONOMICGROWTHi n P a k i s t a n

If we look at the history of economic

development in Pakistan the country

witnessed its first major high economicgrowth phase in the 1960s The country

was able to create an industrial capitalist

class but later on it was found that this

growth only benefited a very specific

minority class and created huge income

inequality After experimenting with

nationalization in the 1970s the high

growth phase returned in the 1980s The

economy experienced high growth rateswith foreign aid inflows but this time it

was not backed by the same productivity

growth as in the 1960s

By Salman Ahmed Shaikh


BANKING



n the later part of the 1980sPakistan went to the InternationalMonetary Fund (IMF) and e World Bank for Structural Adjust-

ment Program (SAP) IMF recommend-ed privatization diminished role ofgovernment in running businesses

deregulation and liberalization e plan also pushed the country to removequotas on international trade lowertariffs expand list of importable itemsreduce subsidies and increase indirecttaxes ese SAPs brought negativeimpact on growth inflation incomedistribution the social sectors and poverty in the lsquolostrsquo decade of 90saccording to Akber Zaidi in his bookldquoIssues in Pakistan Economyrdquo

Dawn of the new mil lennium broughtfresh investment capital and huge inflowof remittances However the economicmanagement during the first decade of thenew millennium could not convert thisthird phase of high economic growth intoa sustainable process by implementingstructural reforms

Aer World Trade Organization(WTO) regulations were put in place theglobal trade is now increasingly replacing

quota-based trade restrictions with tariffsTrade policy cannot be made in a vacuumand using import substituting industriali-zation and maneuvering exchange ratescannot help to replicate similar growthlevels of the past

Apart from the structural change in production and employment there alsohas been a change in the exports andimports mix and diversification in importsources and export destinationsNon-Discriminatory Market Access

(NDMA) status to India GeneralizedSystem of Preferences (GSP) Plus statusextended to Pakistan and prospects ofnew trade ties with Central Asia especial-ly in the energy sector present new prospects as well as challenges forPakistan On the other hand the countryneeds to diversify its export marketsespecially if the economic crisis continuesin Europe But amidst these opportuni-ties weak law and order situation andenergy crisis has led to not only capital

flight and brain drain but a lot ofestablished entrepreneurs have shiedtheir production facilities to countrieslike Bangladesh and Turkey

1 Challenges for Pakistanrsquos Exports

Energy Crisis

Energy crisis in Pakistan has worsenedespecially since 2005 It has led to loss of potential output increased incidence of

manufacturing sector unemploymentcost push inflation capital flight lowmanufacturing capacity utilization andloss of export markets e contributingfactors to the crisis include inefficientenergy mix price distortions and lowinvestment in alternate energy e shortterm measure by the government toabsorb loss from price distortions createdby an inefficient energy mix has resultedin the ballooning fiscal deficit

For estimating the cost of energy onoutput in Pakistan a study at PakistanInstitute of Development Economics(PIDE) estimated the cost of unservedenergy using primary data from firmsAccording to their estimates the overallindustrial sector loss ranges between Rs269 and Rs 819 billion e figure rough-ly equals 1 to 3 of total GDP per year

Furthermore oil related imports ofPakistan now exceeds one third of totalimports Rising oil prices have resulted inhigher imports balance of paymentsdeficit decrease in value of rupee andsoaring inflation

It is now appreciated by almost allcircles that at current consumer prices forelectricity the energy mix has to be modi-fied is modification in mix requiresnew projects and these projects requirehuge amount of financing But due todelay in tax reforms and administrationGovernment is already cash starved with

mounting fiscal deficit and it cannotsustain the subsidies

Since energy is a major component ofcost of production and transportation itleads to cost-push inflation spiral in theoverall economy Hence the final export price of finished goods especially in the wake of free trade aer WTO rules is nowcompetitive with the rest of the world

Law amp Order Crisis amp Weak

Governance

Security of property rights has been one ofthe most important determinants of whysome countries developed quickly than

others In Pakistan return to democracyin 2008 aer the military rule ended washoped to change matters But politicalforces in capitalistic democracy contribut-ed in maintaining the status quo by providing token benefits to their votersand by creating and encouraging an

environment where the common publichas no choice than to join hands andsupport them to safeguard their private property rights One of the reasonsbehind capital flight brain drain and lackof domestic and foreign investment is theinadequate provision of civil as well as private property rights in Pakistan

2 Macroeconomic Imbalances

Low Savings and Investments Ratio

Economic growth literature highlightsthe importance of capital formationcomplimentary investments and physicaland social infrastructure Pakistan is oneof those countries that have very lowsavings rate Pakistan has one of the lowestinvestments to GDP ratio in the worldOne of the prime reasons of low invest-ment to GDP ratio include the high costof doing business which includes i) hightaxes in the formal sector ii) supply sidebottlenecks iii) weak law and ordersituation and iv) weak legal system andenforcement

High Trade Deficit

Pakistan has achieved steady increase inexports in absolute terms but the importshave surged steeply than the exportsFigure 1 shows that the gap betweenexports and imports is increasing asrepresented by the vertical distancebetween the two curves e trade deficit

has widened in 2005 and 2008 when the world oil prices swelled However withthe continuation of energy and securitycrisis and rapid decline in foreign invest-ment the trade deficit has continued torise In recent quarters the trade deficit isnarrowing down as world oil pricescontinue to decline

Rapid Rupee Depreciation

Rupee has witnessed a free fall during

2008-13 than in the almost twice as longMusharraf era before that In FY08PKRUSD exchange rate was hoveringaround PKR 60 But in 2008 rapid depre-ciation of rupee began e chief reasons




ciation of rupee began e chief reasons were decline in foreign investment global

economic crisis oil price shocks domesticinstability and agitation and resumptionin Pakistanrsquos foreign commitments to theinternational lenders Only in 2012 and2013 rupee has depreciated by about25 as shown in Figure 4

Reasons for the rapid depreciation ofrupee include a) high import bill ii) lowForeign Direct Investment (FDI) and iii)constancy in remittances Year-on-Yeargrowth e spurt in exchange rate in2013 was also influenced by speculativerun and uncertainty over Pak-US andPak-IMF relations Rise in import bill andslack growth in exports had led to arelatively more increase in demand thansupply for USD e Central Bank initial-ly decided not to intervene and themarket forces together with speculatorslet the rupee depreciate speedily Lateintervention by e Central Bank hadstopped the damage for the time beingbut the fundamental drivers for suchrapid depreciation still need to be tackled

with sound macroeconomic policy andlong term economic planning

Fiscal Imbalances

Pakistan is classified as lower to middleincome country by IMF and it is ironicthat amongst those countries Pakistanhas lowest taxes to GDP ratio InPakistan despite the spurt in economicgrowth since 2003 the tax to GDP ratiohas consistently declined and now it is

one of the lowest in the world InPakistan the income tax collection is notas broad based as it should be and lack ofdocumentation and lsquoun-documentationrsquodue to stringent conditions for formal

Figure 2 Top Export Markets by Size of

Exports for FY13

Figure 1 Imports and Exports (in bln $)

During 2005-2014

Source Pakistan Bureau of Statistics Source State Bank of Pakistan

3887280

37

2698910

26

1485569

14

1370196

13

1058617

10

Exports (in $ mln)

U S A China U A E Dubai U K Afghanistan

Figure 3 Exports Composition during FY09-FY13

Source Pakistan Bureau of Statistics

Figure 3 presents the export composition of Pakistanrsquos exports by commodity groups It can beseen that energy crisis and deteriorating law and order situation has taken a toll on competi-tiveness of Pakistanrsquos manufactured exports e ratio of Pakistanrsquos manufactured exports has

declined from 74 to 68 during 2008-13 It shows that value addition has become costly inPakistan with the continuation of energy crisis weak law and order situation and high cost ofcapital amidst tight monetary policy stance by the central bank until recently

Figure 2 represents major export destina-tions for Pakistanrsquos products It can be seenthat a lot of room exists for trade withSAARC countries Central Asian countries

African countries and GCC countries With Economic crisis in USA amp Europeand geo-political crisis in Middle East it is

pertinent to seek further diversification inexport markets

sector has resulted in slow progress in theexpansion of tax base Only 2 of the population in Pakistan is registeredtaxpayers e result of low tax collectionis reflected in low investment in develop-ment and industrial infrastructure andlower scale of provision of key publicgoods which are essential for enabling the

existing firms to remain competitive andto attract new private investment in thecountry

Figure 4 Exchange Rate PKRUSD (2008-2014)

Source State Bank of Pakistan






NEEDfor Vast Spread

ATMsin Pakistan

ATMs play a significant role for

the banking sector and its

customers in dealing with their

service and cash requirements

mainly in non-banking hoursthroughout commercial cities

and metropolis of the country

The importance of ATMs could

be determined with the value

and volume of transacted

amounts through the machinesowned by different banks

By Muhammad Arifeen


BANKING



orld Bank defines ATMs ascomputerized telecommunica-tion devices that provide clientsof a financial institution access tofinancial transactions in a public

place ere are only 7 Automated TellerMachines for 100000 adults in Pakistan

as banking happens to be one of the fastestgrowing and profitable industries eofficial data reveals that as of June 30th2014 there were 8240 ATMs acrossPakistan in a population of 200 millionout of which 65 percent are adultsAccording to State Bank of Pakistan100000 of the countryrsquos total 12 percentbanked population were reliant on cashmachines for their financial transactions at

public places

In view of the acceptability of ATMsand 12 percent of the countryrsquos totalbanked population the State Bank believesthat there is a need to increase financialliteracy and acceptability of electronicbanking channels amongst people eDeputy Governor of State Bank ofPakistan has voiced his concern over thegrowing demand for ATMs in the countryand urged the banking sector to increasethe number beyond the existing 9000ATMs deployed in the country

Pakistan maintains a ratio of 649ATMs per 1000 individuals is figure isconsiderably lower than the average

present globally India boasts of 1327ATMs per 1000 individuals and is actively

working towards increasing this figureere are 290 machines in South Korea173 in US 424 in Indonesia Pakistanibanks are aiming towards increasing theATM machines count by 500-600 in2015

Commercial banks are seeing continu-ous expansion throughout the country Formeeting the increased cash transactiondemand of customers the AutomatedTeller Machines network of commercialbanks increased to 9018 by the end ofDecember 2014

e installation of 308 ATMs increasedtheir total number to 6757 which is 176

percent higher than the number of ATMsat the end of the last quarter of the fiscal

year 2011-12 As many as 308 Automated

Teller Machines (ATMs) were installed and67 bank branches added to the onlinebranch network in the country in thefourth quarter of fiscal year 2013

In comparison with other plastic cardsATM-only cards showed the highestgrowth rate of about 45 percent e totalnumber of ATM-only cards issued so far is962000 although debit cards have thehighest percentage share (90 percent) inthe overall plastic cards category

In terms of the volume of overalle-banking transactions ATM transactionshave a major share of 637 percent and theaverage value per transaction stands at Rs10 007 In comparison with the number oftransactions reported in the third quarterthe overall volume of ATM transactionsincreased 8 percent while the value alsoincreased by 8 percent

e number of ATMs in the country

has reached 7684 for the quarter whichended in December 2013 showing anincrease of 102 percent from the previousquarter As of December 31 2013 forevery 100000 people there are 42 ATMsin the country and during the same periodRs 635 billion was transacted using thischannel

e State Bank of Pakistan has directedall the commercial banks to improve the

poorly managed ATM services across thecountry rough a circular the SBP had

instructed the banks to ensure round-theclock availability consistent monitoring ofATMs and mobilisation of maximumresources to timely resolve issues like lsquooutof cashrsquo hardware soware problems

power outages and connectivity glitchese State Bank of Pakistan has askedcommercial banks to deploy moreAutomated Teller Machines (ATMs) as thecurrently available network of 9000machines is insufficient to match thegrowing demand

It has taken notice of poor performanceof Automated Teller Machines and alsoasked the banks to immediately improvetheir functioning SBP also deputed inspec-tors to monitor the ATMs across the countryDuring Ramazan and Eid-ul-Fitr holidaysthe SBP through a circular advises all banksto meticulously comply with its guidelinesand instructions regarding management ofATMs operations in order to ensure continu-ous availability of ATM service

e authority imposes heavy penaltiesunder the relevant laws on those banks

which fail to comply with the guidelinesand instructions regarding management of

ATM operations and monitoring of ATMcashdowntime during Ramazan and Eidholidays e SBP has depute specialinspection teams to carry out surpriseinspections of ATMs throughout thecountry to ascertain the compliance level ofits instructions and guidelines by banks

Banks are required to take all necessarysteps to ensure continuous availability ofATM services

Banks have already been advised by SBPto make adequate back-up arrangements toensure availability of ATM servicesround-the-clock and put in place compre-hensive operating procedures to timelyresolve the cases of out-of-cash breakdownof ATMs systems and network Usually theATMs either do not work or are found

out-of-cash while in Ramazan due toreduced banking hours and during thattime more people rely on ATMs for cash

withdrawal

State Bank of Pakistan (SBP) penalizescommercial banks with recurringcomplaints of having dysfunctional andimpaired Automated Teller Machines(ATMs) aimed at improving system ofalternative deliver channel and bankingsystem throughout the country Sources

said that the banking regulator has consti-tuted a committee to investigate bankissues in operating ATMs as a large numberof complaints have been received by theconcerned department of e CentralBank

SBP is trying to resolve the issues ofbanks particularly the availability of cashon urgent basis so they could serve thecustomers without any delays andhardships e Central Bank decided toascertain snags at ATMs including

hardware faults to soware issues cashunavailability or link problem to giveguidelines to banks for fixing problems intheir respective ATMs In case the banksfail to maintain their ATM functioninground-the-clock e Central Bank willmost likely impose fine on the banks

Delays by banks in maintenance andcash feed in ATMs will be penalized toimprove the alternative delivery channel ofthe banking system e banking regulato-

ry wants to address the issues of customersregarding ATMs to facilitate them and togain their confidence on banking system

with best qualitative services




Banking industry is considered to be

the largest and a dominating facet of

financial sector not only with regard

to turnover profits and employment

opportunities but also owing to its

paramount impact on the countryrsquos

economy as a whole It was for thesereasons that during the last few dec-

ades there has been a growing

tendency to apply marketing tools

and techniques to promote banking

activities However as a part of

banking activity marketing is of

recent origin Its advent can be

traced to the American Banking

Association Conference held in

1958 In Europe however it was not

until 1970 that marketing entered

into financial sector

By Dr Sabir Ali Jaffery

Marketing system ofphysical products has

several middlemen such

as distributors retail-ers and commissionagents As against this

the marketing of bank-ing services is a direct

function between sup-plier and the end user


BANKING



arketing has been defined by various men-in-profession as aldquopart of management activity

that seeks to direct the flow of bankingservices profitably to selected customersrdquo

e Rapid Results College (RRC)

London maintains that marketing forbanks involves

bull

bull

e Institute of Marketing Londonhas defined marketing as ldquohellipthe manage-ment process responsible for identifyinganticipating and satisfying customerrequirements profitablyrdquo

In the wake of increasing competitionamong banks and non-banking financialinstitutions marketing has becomeintegral part of banking activities Its rising

importance is marked by three majorfactors such as technology advancementand diversification of customerrsquos needs

However nature and scope of market-ing in promoting banking services issharply distinct from marketing oftangible goods

Marketing in banks has to performtwo different functions It has to attractdeposits as well as simultaneously persuade customers to utilize its servicesis two-fold nature of banking functionsmakes its marketing operations morecomplex as compared to those that arenormally faced by other commercial andmanufacturing organizations

Next to perceive marketing vis-agrave-visbanking activities it is of prime concern toidentify the distinct nature of bankingactivities which characterizes as under

Intangibility

Banksrsquo services are intangible in nature asagainst goods and commodities Hence problems of packaging storage transpor-

tation and inventory control are notrelevant to it Services of middlemen which are oen utilized in marketing physical products have no role to play inmarketing or selling bank services Moreo- ver the bank marketer does not have todemonstrate or display the lsquoproductrsquo that

he offers It therefore seriously limits thealternatives available to him which makeshis job solely dependent upon his profes-sional skill

(ii) Inseparability

It implies that availability and offer ofbank services are simultaneous e onlything in between is marketing activities to promote their sale

(iii) Individualized Marketing

Marketing system of physical products hasseveral middlemen such as distributorsretailers and commission agents Asagainst this the marketing of bankingservices is a direct function betweensupplier and the end user is necessi-tates establishment of extensive branchnetwork

(iv) Lack of distinctiveness

Services offered by different banks arealmost identical e emphasis istherefore shied from product to promo-tional strategies which consist of branchlocation marketing skill of the marketerquality of service introduction of newservices reputation and publicitycampaign

(v) Retaining

Retaining of a customer is more impor-tant than attracting one A disgruntledand dissatisfied customer may provesubstantially harmful

(vi) Diversified services

Banks to remain in the competitivemarket have to offer a wide range of products and services to meet variety ofbusiness needs of different class ofcustomers

(vii) Widely dispersed branch network

An intelligently developed branchnetwork plays pivotal role in laying

foundation of a bankrsquos expansion onsound footing leading to a prosperousfuture

(viii) Prudent Expansion

Banksrsquo main earning is from making

advances e well known maxim isldquowhile selling loans banks are buyingrisksrdquo Hence expansion both intensiveand extensive should be well thought ofand most articulately planned

ere are a few more special ities as underassociated with financial services Fiduciary Responsibility

Bankers by persuading customers to put

their funds under their (banksrsquo) care andcustody incur much heavier responsibili-ties toward their customers than thesellers of consumer products have towardtheir buyers Whilst it is inconvenient ifthe goods are substandard or not other- wise as per the sample these may bereplaced or repaired In contrast if abanker fails to meet his fiduciary responsi-bilities the implications can havefar-reaching and long-term effects

Impact of Economic Policies

Banking operations are directly affectedby the policy changes brought about bythe monetary authorities of the countrysuch as e Central Bank and e Minis-try of Finance For example the recent 1reduction in the interest rate announcedby the State Bank of Pakistan has upsurged the loan-giving activities ofcommercial banks

Changes in the economic and mone-tary policies of the country require that thetargeting planning executing andmonitoring of marketing activities needs tobe flexible so as to absorb the implicationsof such changes without much upheaval

Dual Function of Attracting Depositsand Lending

A customer of the bank is both the suppli-er and user of funds is entails atwo-fold marketing strategy to be pursued

by the bank marketers

In view of the typical banking activitiesand commensurate marketing techniques

People and techniques committed tomake best possible use of a bankrsquosresources to generate profits byidentifying and meeting the needs ofits present and potential customers

An approach to business or amanagement attitude that makes abank operate profitably by satisfying

its customersrsquo needs




the bank marketing function evolves fivesubsets of management controllable variables as shown in Figure-1 abovetaken from the lsquoBank Marketing Manage-mentrsquo by Arthur Meidan Senior Lecturer

Sheffield University published at HongKong by e Macmillan Studies inMarketing p-5

e Marketing Functions in Banks

A bankrsquos marketing functions focus on thefollowing activities

bull

bull

bull

bull

bull

bull

bull

bull

bull

bull

This treatise would be meaningfully

concluded by reproducing what R Brienand J Stafford famous marketing wizards offered in their article ldquoTheMyth of Marketing in Bankingrdquo Whileoffering a two-fold role for marketing inbank management they stipulated ldquoone isat the level of formation of the marketingmix for the development of marketsegments which seem ndash according tomarket research --- to hold the bestopportunities for profitable exploitation While the second is of a philosophical

nature --- that all bank activities shouldbe so geared as to focus on the needs and wants of the customer --- which is areiteration of the total marketingconceptrdquo

BUSINESS

POLICY

Financialmanagement

Bankrsquos organization andcontrol variables

Environment(non-controllable)

variables

The controllable set ofmanagement variables

OperationsSystems and

PersonnelManagement

Marketingmanagement

Bank Objectives

Market segmentation

Customersrsquo behaviour

Calculated dispersion of branch network

Diversification of services A widerange of services offered is the nucleus

of business promotion activity

uality of service rendered Market-ing activity may procure a business butit can be retained only through quality

service

Pricing of product is should becompetitive but profit generating

Continued market research

A watchful eye on competitorsrsquo strategies

orough grasp of economic andmonetary policies of the countryand prompt notice of changes in

them

Bank marketers should have soundknowledge of the products of the bankand up-to-date information of laws

rules and regulations issued from timeto time by governments and regulatoryauthorities

Figure 1 The Bank Management System






PRIVATE EQUITY INVESTMENTSOn the Horizon of Pakistanrsquos Financial Landscape

Private Equity (PE) Investment is a slight new concept with respect to Pakistani FinancialMarket Most of the times the term private equity investment is mixed with the term

public equity investments which are quoted on stock exchanges Both investment plat-

forms aim to provide capital to investee companies with an objective to earn higher returnson investments However it is unlikely to say that equity investments PE investments maynot be traded on stock exchange hence considered as illiquid investments ese are longterm and strategic investments and cannot be easily disposed-off PE investorstake a long term position for their investments and aim for h i g h e rreturns as compared to other available mode of invest-ments

By Zulfiqar Haider


BANKING



Private Equity Concept

Private Equity is an asset class which aimsto invest in companies with the objectiveto generate superior returns by executing aspecific exit strategy In PE investmentsexit strategy is the way through which the

investors pull back their investments atspecified time with desirable returns PEInvestments are routed through participating in ownership stakes of investeecompanies by acquiring of an old stock orby subscribing to the new issues either as amajority or minority shareholders

e basic ideology of PE investment is toinvest in those companies who are seekingfunds to commence construct completeor to enhance the performance of differ-

ent ventures in order to generate revenuesGenerally PE investors invest their moneyat a time when there is a potential thatInvestee Company will make higherreturns because at this stage the cost ofacquiring or subscribing the ownershipstake is comparatively much lesser thanthe cost of stock once the venture startsgiving the returns

PE investments are for longer tenure withthe risk of loss of invested capital ischaracteristic makes these investments asilliquid assets because investor cannotreadily sell these investments at desirablereturns So a typical PE investment aimsfor the holding period of 3 to 10 years Butthis feature of investment enables itsinvestor to generate a 2-10 times multipleinvested capital with an expected IRR of20-50

One thing must be understood that PEinvestments are not similar to simple partnerships in ventures Because partner-

ships are formed with an objective to runthe business over a time whereas PEinvestments are made with an aim to takeadvantage of dislocations in the market bymaking medium to long-term investmentsin areas where there may be a uniquesituation driven by a mismatch for capitalresulting in superior returns

Private Equity History and Initiatives inPakistan

In history if we search for the oldest PEtransaction JP Morgan stands out forexecuting a significant PE transaction where in 1901 they executed theleveraged buyout transaction of Carnegie

Steel Company for an amount of US$ 480million Later in 1946 some traditionalPE firms were established In the pastdecades there were so many popular PEtransactions with huge volumes ofamount invested in these transactions

In Pakistan formalized private equityinvestment is a relatively new concept PEMarket is yet not established and alsothere is no understanding for differentrules and regulations governing directly toPE market investments At present PEinvestments are governed through AssetsManagement Company Rules issued bySECP as mostly PE firms operate theirinvestments through a PE Fund which ismanaged by an Asset ManagementCompany or Fund Management Compa-

ny Recently SECP issued ldquoPrivate FundsRegulations 2015rdquo aiming to regularizethe formation and operations of PrivateFunds

US-Pakistan Business OpportunitiesConference held in 2013 was concluded with the launch of Pakistan Private Invest-ment Initiative to mobilize at least US$150 million in PE Investment USAgency of International Development(USAID) announced the Pakistan PrivateInvestment Initiative with Abraaj Groupand JS Private Equity Managementrough this initiative two new PE funds with the sole focus on growth of SMEsector in Pakistan will be establishedUSAID will provide a seed investment tocapitalize the Funds and other limited partners will match or exceed the fundcapital SECP has also proposed some taxbenefits for the income of PE Investments

So we can say that the PE investmentshave great potential in the upcoming years

as the economic indicators are favorablebecause returns are more lucrative forcommercial businesses when there isdeclining interest rate scenario in econo-my

Private Equity Risks amp Attraction

PE investment is highly attractive to thoseinvestors who can hold their funds for alonger period As mentioned earlier PEmarket is not yet formalized in Pakistan

hence there is no published comparisonavailable which shows the returns of PEinvestments over other modes of invest-ments However if we look around the world PE Investors target their rate of

return between 20-50 depending uponthe nature of transaction ere is a differ-ence for benchmarking the returns on PEfunds and other funds however if weanalyze the different research reports indifferent markets it is evident that thereturns on PE Funds are much more than

the returns available in bond funds ortraded equity funds

e higher risk of PE is supplemented byhigher returns e biggest risk faced byPE investors is the loss of capital investedAs this is a long term investment andcompletely based on the performance ofInvestee Company therefore there is a riskof not recovering the invested amount orthe underperformance of InvesteeCompany may result in the lower or no

dividends which can extremely hamperthe returns for PE investors ere are somany other risks associated with this typeof investment like market risk for underperformance of primary marketsexchange rate risk if there is currencydifference involves in investments liquidi-ty risk as these investments cannot be sold with readily recourse

All risks are controlled through invest-ment screening and monitoring criteria prepared implemented and executed by aPE Firm which manages the PE Invest-ments

How Private Equity Investment Works

ere are many different options availablefor PE Investors but a typically proven PEinvestment structure is one where a PEFund is established which is managed bya Fund Management Company (FMC) who use the fundrsquos capital to invest indifferent types of PE investments

e PE fund is established under thegoverning laws and capitalized by PEinvestors who called the Limited Partners(LPs) in Fund Once the fund is capital-ized with the investment of LimitedPartners a FMC is appointed who willmanage and operate the fund Sometimesa fund manager also invests some of hisown money in the fundrsquos capital with the purpose to become a stakeholder of thefundrsquos performance Fund Manager

invests in the fund as a General Partner

A FMC charges a certain percentage tothe Fund Investors as a fund deploymentfee is fee typically ranges between






1-3 of deployed fund Fund Investorrsquosalso agree to share a carried interest withFMC if the actual return of fund exceedsthe agreed targeted returns

FMC deploys the funds in different typesof PE investments through a comprehen-sive investment appraisal process with the

approval of investment committee Invest-ment appraisal process contains thecriteria where a fund manager selects itstargeted sector returns mode of financ-ing tenure of financing with an exit strate-gy e FMC may appoint different legalfinancial and technical advisors depend-ing upon the type nature and size ofinvestment

Types of Private Equity Investments

Private Equity Investments can bedeployed in wide mix of investment typesdepending upon the industry naturetime and size of transactions A mix ofhybrid equity investments can also bemade where an equity is mixed with a preferential debtshares but return onequity is greater than the returns on debttherefore PE investor prefers to invest in purely equity trade Following are the keytypes of investments available to PEInvestors

Venture Capital

is investments in a company which is inthe early stages of development usually

with negative cash flows Typical holding period for venture capital is 5-10 years with the targeted IRR of 30-50 on5-10x cash multiple Risk of capital loss ishigh exit can be availed through strategicbuyer or IPO

Growth Capital

is investments in growing companies which need funds for capital expendi-tures acquisition or to cover a gapbetween working capital Hybridequitydebt can be placed for this catego-ry Typical holding period for growthcapital is 3-7 years with the targeted IRRof 30-40 on 3-7x cash multiple Risk ofcapital loss is moderate as company isalready established exit can be structuredthrough a sponsor trade buyer sale to a

strategic buyer or through FinancialBuyer IPO

Leveraged Buyout

is an investment type where a PE firmacquires the target company with a signifi-cant amount of debt and equity Once thecompany is acquired the deleveraging process is initiated through cash flows ofacquired company to reduce the debtburden as quickly as possible enabling the

increase in the value of company Holding period of LBO is 2-5 years with a targetedIRR of 25-35 on 2-5 times cash multiple Risk of capital loss is low

Some other types of investments are alsoavailable for PE Investor namely Mezza-nine Financing Pre-IPO placementDistressed Buyout for corporate restruc-turing or turning around the businesses

Challenges of Private Equity Investmentsin Pakistan

Mostly private equity investments arehuge in size and to locate a strategiclimited partner is a very difficult taskespecially in the context of Pakistan whenthe country is facing internal and externalterrorism and political de-stabilityForeign investors are reluctant to investtheir money in long term investments Iflocal commercial banks act as LP thenthey need to manage their capital adequa-cy requirements as Basel III accord

introduced some higher percentages forrisk weighted assets of unlisted stocksMostly PE firm works with no collateralsas direct participation in equity but highNPL ratio and a prolonged litigation process in country suggests the high riskof capital loss

Despite the challenges a Private EquityPlatform can play a vital role in develop-ment of economy as it operates throughequity participation which reduces theinterest payment liability of performing

company High returns are lucrative forinvestors to invest their money in privateequity A high growth is anticipated forPrivate Equity Market in Pakistan

ldquoThese are

long term

and strategicinvestments

and cannot

be easily

disposed-offrdquo





COMMERCIAL BANKING Problems and Solutions

Q1 e articles of association of acompany requires that the company shallhave minimum four directors and thatthe account of the company shall beoperated jointly by the executive directoralong with one director e company forthe time being has only three directorse executive director of the companyapproaches you to open companyrsquosaccount He maintains that the personnominated as the fourth director is out of

the country at present who is expected tobe back within the next fortnight whenhe will sign the relative documents In themeantime the account may be opened

with the existing three directors with themandate as aforesaid Will you open theaccount Substantiate your answer

Ans e company must have theminimum number of directors as requiredunder the articles of association failing whichit will not be recognized as a properly consti-tuted entity e position may be explainedto the executive director who being a profes-sional himself should appreciate your pleae request of the executor director shouldhowever be politely declined

Q2 One of the joint signatoriesauthorized to operate upon a companyrsquosaccount relinquishes his office Conse-quently another person is appointedagainst the vacancy What fresh mandate

will be required to accept him as anauthorized person to operate on theaccount in terms of the original mandate

Ans Assuming that the outgoing person was an employee of the company a

letter signed by the chairman the manag-ing director or the secretary to the boardcontaining the duly constituted authorityin favour of the new incumbent to operateon the companyrsquos account along with hissignature appended thereon and attestedby the signatory of the letter shall bedeemed sufficient authority

Q3 A private limited company is planning to be a public limited companyIt has completed all the requisite formali-ties and now proposes to issue its sharesto the public It wants to appoint you asbanker to the issue Moreover it desiresthat a running finance facility be extend-ed to it against the security of the share

money thus received What should be your answer to the proposition

Ans Assuming that nothing adverse asto the credibility of the private limitedcompany is in your knowledge there is noharm in accepting the offer regarding yourappointment as its banker to the issue

However any advance against theshare subscription is not advisable for thefollowing reasons

(i)

(ii)

(iii)

e company cannot lay hands onthis money until certificate ofcommencement of business hasbeen issued to it

e company cannot withdrawthis money unless shares have beenallotted to the applicants

Advance against the companyrsquosown shares is tantamount toreduction in share capital whichcannot be made by the company without undergoing its cumber-some procedure


BANKING



Q4 X secretary and Y director of a

company sign a cheque as under

X Y Secretary Director

of XYZ amp Co Ltd

Will the bank be within its right to debitcompanyrsquos account with the amount ofthis cheque If the payment is made willit meet the requirements of payment indue course as prescribed under Negotia-ble Instruments Act 1881

Ans Prima facie the cheque is notsigned in the representative capacity so asto bind the company on it Hence its

payment to the debit of the companyrsquos

account may be tantamount to conversionMoreover the signatories may be held personally liable to the beneficiaries of thecheque as there is no indication that it wassigned on behalf of the company

e payment if made will not beldquoaccording to the apparent tenor of theinstrumentrdquo as is required under Sec10 ofthe Negotiable Instrument Act Hence thebank will not get protection should the payment be challenged

Q5 e mandate to operate on acompanyrsquos account is ldquoby the secretary

with two directorsrdquo Mr Abdul Hayee issecretary as well as a director He along

with another director signs a cheque both

as secretary and as second director asunder Will this cheque be paid

For Electronic Entrepreneur LtdAbdus Sami - DirectorAbdul Hayee - DirectorAbdul Hayee - Secretary

Ans What is required under themandate is that the secretary shall signalong with two directors It means that inall three different officials will jointlyoperate on the account Since this condi-tion is not fulfilled when one and the sameofficial signs twice although in different positions Hence the cheque is irregularlydrawn and will not be paid




Banking

ZAKATin Socio - Economic Development in Pakistan

Contribution of

The research is conducted to comprehensively

describe the evaluation of zakat system in

Pakistan This descriptive investigation leads to

establish a relationship between the zakat

social and economic development The zakat

system creates economic balance in the econo-

my by contributing negative impact on the

concentration of wealth and contributing positive

impact on the circulation of funds This Islamic

mechanism provides positive impacts on thepoor segment of the society on the basis of the

assumption that zakat is an anti-poverty instru-

ment introduced by Islam

he financial obligation that is mandatory in Islam on every Muslimsubject Sahib - e - Nisab (as prescribed by the Shariah) is Zakat euranic injunctions (960 9-103) provides the system for collec-tion of zakat and its distribution e insight of practical implica-

tions of zakat collection and distribution is in the early Islamic history eobjective behind collection and distribution of zakat is to minimize the concen-tration and accumulation of wealth in few hands and al low its circulation in all parts of the economy Its benefit goes to the poor and deprived class of thesociety e economic system of Islam guarantees that each and every individualin the society can atleast fulfil all its basic needs through zakat e second formof charity of Islamic economic system is sadaqat but it is voluntarily not manda-tory as the system of zakat in Islam e zakat system of Islam equip the poorsegment of the society so they can actively participate in the economic activityof the society

By Aysha Noor


ISLAMIC BANKIG



e first objective of Zakat system inIslam is to purify the activities as theProphet (PBUH) mentioned that zakat purifies the wealth Secondly it does notallow concentration of wealth in fewhands but allows circulation of wealthfrom rich to poor segment of the society

irdly the zakat system of Islam is runthrough an organized institute in the earlyhistory of Islam and therefore providessalaries to institute workers Fourthly thezakat system induces the economic justices by collecting zakat from rich anddistributing among poor Although it is athought provoking truth that there aremoral hazards involved in the collectionand distribution of zakat in Pakistan but itis still very effective and active in many parts of the Muslim world Despite these

moral hazards there are millions of rupeesdistributed across the country in the nameof zakat in Pakistan e number of people below poverty line in Pakistanincrease every year despite the number ofsocial and charity programmes of govern-ment and private NGOrsquos

is research is conducted with theaim to comprehensively provide thedescription and evaluation of zakat inPakistan and is significant from the zakat policy makersrsquo point of view that how thezakat system can be better implementedto achieve the socio-economic develop-ment It is also an addition towards theexisting literature as it provides the insightfor new researchers on the relationshipbetween zakat and economic develop-ment

Theoretical Background ofStudy

Nisab and its Contribution in Economic

Development

e practical implication of zakat in earlyIslamic history suggests that zakat isdeductible on valuables like gold silverlivestock treasure trove mines merchan-dise and agriculture produce e currentIslamic methodology of deduction ofzakat from holdings of currency in various forms of financial assets such asbank deposits shares and securities is theoutcome of the Ijtihad known as qiyas

e goods in personal use are not subjectto deduction of zakat such as the houseuse as the residence of the owner andhisher dependents household itemsanimals and any means of transportation

for personal use although there is a differ-ence of opinion on it e agricultureland plant and machinery are not subjectto deduction of zakat Zakat is deductibleon the annual savings of the individuale Prophet Muhammad (PBUH) has prescribed the nisab on different items

and ijma (consensus of jurists) suggeststhat there is no variation from the instruc-tion of the Prophet (PBUH) permissiblee declared nisab for gold is 20 dinars or85 grams of gold and 200 dirhams or 595grams of silver e nisab for the holdingof cash and other financial assets aresimilar to that of the gold and silverHowever with the passage of time the value of silver reduced relative to goldtherefore there is a difference of opinionregarding the declaration of nisab on the

basis of gold or silver e declaration ofnisab in Pakistan is on the basis of golde nisab for agriculture produce is 5 wasq or 950 kg in case the agriculture produced measured in terms of capacityand equivalent value of staple in othercases e type of animal determine thenisab for the livestock For example ifcamels are 5 in number than nisab isapplicable 30 in case of bovine animalsand 40 in case of goat and sheep e earlyIslamic history is silent regardingdetermination of nisab in case of the

minerals e percentage of zakatdeclared by Prophet Muhammad(PBUH) is 25 for gold silver and otherfinancial assets and merchandise eagriculture produce on the land irrigatedthrough rainfall is of 10 and irrigatedthrough artificial mean is 5 edetailed schedule laid down by ProphetMuhammad (PBUH) is applicable on various categories of animals e rate ofzakat on treasure trove is 20 e Islam-ic history is silent regarding the rate of

zakat on minerals however some considerthat it is 25 in case of minerals whileothers say that it is subject to khums of20 e zakat is applicable on all theassets above or equal to nisab and isaccumulatedsaved by the individual forthe whole year Zakat is deductible oncein the whole year while the usrh on theagriculture produce is applicable inharvesting of crop the general consensussuggests that nisab determines theminimum level of holding required forthe payment of zakat Zakat is the source

of poverty alleviation in the Islamiceconomic system It is collected from therich and distributed among the poor andneglected part of the society

Methods Of Zakat Collection And Distribution In Islam

e literature provides insight for the roleof zakat and charities in the modernmuslim states However there is still roomfor further research in the area of zakat as

an Islamic tool for social and economicdevelopment ere are number ofquestions which arise in this aspect such as

The best management of zakat is theinstitutionalization of the Islamic zakatsystem in the early Islamic history wherethe zakat workers are involved in collec-tion of zakat from one segment of themuslim society and its distribution amongthe other segment of the society It isneeded to realize the importance of zakat

as the role of any intermediary service which bring together the buyer and sellerof any product or services Hazart AbuBakr Siddiq (RA) waged war againstthose who denied zakat as the pillar ofIslam Therefore there are still believersthat zakat needs to be controlled throughgovernment intervention Zakat needs tobe clearly separate from other governmentrevenue generating sources such astaxation custom duty and excise etc dueto following reasons

e emergency of Islamic system ofzakat

e contribution of zakat in theeconomic development of Muslimsocieties in past

e role of zakat in present Muslim

society

Is the institutional system of zakatuseful in non-Muslim societies

Zakat is particularly to be distributedamong the poor and deprive segmentof the society instead of any fiscal project no matter how beneficial it is

e zakat rates are determined by theProphet Muhammad (PBUH) and arenot as adjustable to the requirement ofGovernment as the tax rates are(Faridi 1983)

e zakat system is efficient if it isreadily cleared by collecting it fromone segment and readily distributingto the poor segment of society but thisis not true in case of tax








n 30 September the CBPSB launched the second inits suite of professionalstandards e LeadershipStandard for Professional

Bankers is aimed at all bankers who areresponsible for shaping culture strategyand policy e standard applies notonly to Chief Executives and seniormanagement but to leaders and manag-ers throughout CBPSB member firmsAs Simon ompson Chief Executiveof the Chartered Banker Institute andChairman of the CBPSB ProfessionalStandards Committee explains ldquoereis no doubt that lsquotone from the toprsquo isimportant but the CBPSB believesthat lsquotone in the middlersquo is equally

important In shaping the LeadershipStandard we wanted to be clear that theconduct and expertise of leaders at everylevel contributes to the customer-fo-cused ethical professionalism that theCBPSB expectsrdquo

e Leadership Standard sets outrequirements for the professionalconduct (values attitudes and behav-iours) and professional expertise(knowledge and skills) of banking

leaders e CBPSB has prioritizedconduct requirements such as develop-ing and embedding a professional andcustomer-focused approach and culture

StandardBEARERMaintaining momentum and strengthening

professionalism ndash the CBPSB publishes itsLeadership Standard for Professional Bankers

consistent with the Chartered BankerCode of Professional Conduct eCBPSB believes that while profession-al expertise is vital banking leaders mustalso exhibit ethical customer focused professionalism in their conduct andtake active steps to encourage theircolleagues to do the same e Leader-

ship Standard begins therefore with theldquohowrdquo rather than the ldquowhatrdquo For exam-

The LeadershipStandard sets out

requirements for theprofessional conduct

and professional expertiseof banking leadersrdquo


BOOK REVIEW



The Advisory Panel was keen to ensure thatthe Leadership Standard would be accessible

to a wide audiencerdquo

ple it describes how leadersrsquo knowledgeand skills are shared communicated and put into practice how ethical decisionsare reached and how leaders challengeand shape the conduct and behavior oftheir colleagues

THE DEVELOPMENT PROCESS

e Leadership Standard is the productof a detailed and rigorous development process including a public consultation which was carried out early in 2014 econsultation asked if the CBPSBrsquosexpectations of banking leaders as setout in the dra standard were appropri-ate who should be in scope and if imple-mentation of the Leadership Standard would help build over time greater public confidence and trust in individu-als institutions and the banking indus-

try overall

Respondents who were drawn fromthe banking industry academia andtraining indicated strong support for thedra Leadership Standard but suggestedadditional focus on customer outcomesand risk management ese were agreedby the CBPSB and incorporated intothe final standard

e CBPSBrsquos independent Advisory

Panel has representatives from academiaconsumer bodies trade associationsconsumer champions and acts as a hub forthe views of a wide group of stakeholdersIt also offered critical advice at each step ofthe Standardrsquos development e Adviso-ry Panel was keen to ensure that theLeadership Standard would be accessibleto a wide audience ndash not just those in

banking or learning and development butto banksrsquo customers and stakeholderseir advice saw the Leadership Standardrefined and streamlined as well as keyelements of the Code clearly articulated

While the Leadership Standard wasbeing developed the regulatorylandscape and the banksrsquo own initiative

to raise standards ndash the Banking Stand-ards Review Council (BSRC) ndash wereevolving e CBPSB has a clear focuson ensuring that its standards comple-ment and where appropriate build onthese and other initiatives e CBPSBhas therefore kept a close eye on proposals emerging from regulatorsincluding the recent PRA and FCAconsultation ldquoStrengthening Accounta-bility in Bankingrdquo (see page 40) anddevelopments from the emerging BSRC

PUTTING THE LEADERSHIPSTANDARD INTO PRACTICE

With the standard published the atten-tion of the CBPSB has turned to imple-mentation Member firms will begin toimplement the standard in January 2015but not from a standing start ndash as thestandard has developed throughout2014 member firms have used thethemes of the standard to help shape and

inform the internal leadership programmes which will be used tosupport its implementation Susan RiceChairman of the CBPSB comments

We do not underestimate the challenge we face Just as it should be the Leadership Standard

is comprehensive and exacting It is both a statementof intent and a detailed pathway to rebuildingconfidence and trust in bankingrdquo

This article was first published in Chartered Bankerthe magazine of the Chartered Banker Institute

CHARTERED BANKERPROFESSIONAL STANDARDS BOARD

= 8 UK BANKS+ CHARTERED BANKER INSTITUTE

BOARD (SENIORINDUSTRY LEADERS)

PROFESSIONALSTANDARDSCOMMITTEE

WHAT IS THE CBPSB

IMPLEMENTATION MONITORING

PROFESSIONAL STANDARDS TEAM

INDEPENDENTADVISORY

PANEL

that ldquoWe do not underestimate the

challenge we face Just as it should

be the Leadership Standard is

comprehensive and exacting

It is both a statement of intent

and a detailed pathway to rebuilding

confidence and trust in bankingrdquoThe CBPSB anticipates that it

will take a minimum of one year to

implement the Leadership Standard

in full with the first implementation

progress review scheduled for 2016

For more information visit

wwwcbpsborg

ABOUT THE CBPSBThe Chartered Banker Professional

Standards Board (CBPSB)

was launched in October 2011

It aims to enhance and sustain

a strong culture of ethical and

professional development across

the UK banking industry by

developing a serious of professional

standards at Foundation

Intermediate and Leadership

(Advanced) levels The CBPSB

intends to help build over time

greater public confidence and

trust in individuals institutions

and the banking industry overall

and enhance pride in the banking

profession




View on BankerldquoA banker is a fellow who lends his

umbrella when the sun is shining and

wants it back the minute it begins to rainrdquo

Mark Twain

ldquoEveryday is a bank account and time is

our currency No one is rich no one is

poor weve got 24 hours eachrdquo

Christo pher Rice

ldquoIf you want to change the way your

banking system is regulated if you want

to learn the mistakes of whats gone

wrong then you have to change your

governmentrdquo George Osborne

Interesting Quotes

Jokes

The will to win the desire to succeed the urge to reach your full potential these arethe keys that will unlock the door to personal excellence - Confucius

Expect problems and eat them for breakfast - Alfred A Montapert

There is only one corner of the universe you can be certain of improving and thatsyour own self - Aldous Huxley

Do the difficult things while they are easy and do the great things while they aresmall A journey of a thousand miles must begin with a single step - Lao Tzu

Whatrsquos the difference between a tragedyand a catastropheA tragedy is a ship full of bankers goingdown in a storm a catastrophe is whenthey can all swim

__________________________________________

A lady was newly appointed as a clerk in abank The manager of that branch wasfond of Literature and books He asked the

clerkndash rdquoDo you know William Shakespearerdquo

The clerk replied

ndash rdquoNo In which branch is he workingrdquo


HUMOR AND QUOTES







April and October



editorial


















w







$

euro

PKRpound



COVER STORY 06

Cover Story


Prosperity

06

Global

Perspective


08


12


analytical model

16

15


22


26




Financial Landscape

32


36

Banking

MICRO SMALL















civil awards










Tel +92 (21) 3568 0783








+92 (21) 3562 1339 35277511

makramibporgpk






Copyright

















IBP publication(s)

The Institute of

Bankers Pakistan

Humor and Quotes

40

Book Review

Standard Bearer 42


38

Islamic Banking

38





$

euro

poundPKR

MICRO SMALL amp





across the globe

By M Ghalib Nishtar

COVER STORY




According to a

World Bank study


account for 30 of

GDP and contrib-

ute to 25 of

export earnings


































By Asif Ishaq


GLOBAL PERSPECTIVE

































advances














From 1992 to 1995

despite the weak


appreciated with no




bull

bull

bull

bull

bull

















bull

bull

bull

bull









TERRORIST FINANCING





















By Subtain Raza


GLOBAL PERSPECTIVE











Placement





Layering




Integration




rorist Financing








Smurfing



















of money launderers





tial method to move



fundsrdquo


and Terrorist

Financing crimes

are emerging

abruptly impacting

potential negative

consequences on

the economic polit-




Wire Transfers


















Integration

Layering


Placement


Money Laundering


Criminal Acts



Terrorist Financing






ments



Use of Trusts


























By Helena Tejero


GLOBAL PERSPECTIVE















bull

bull

bull

bull

bull

bull

bull


bull

bull

bull

bull

bull






































In 2005 the Banco









structuresrdquo













I m p a c t

Frequency




















banks









bull

bull

bull

bull

bull







Banking

















BANKING













Energy Crisis









Governance







High Trade Deficit













Fiscal Imbalances




Exports for FY13


During 2005-2014


3887280

37

2698910

26

1485569

14

1370196

13

1058617

10

Exports (in $ mln)


















NEEDfor Vast Spread

ATMsin Pakistan











By Muhammad Arifeen


BANKING






public places

























withdrawal




































BANKING







bull

bull







Intangibility




(ii) Inseparability






(v) Retaining






























bull

bull

bull

bull

bull

bull

bull

bull

bull

bull




BUSINESS

POLICY

Financialmanagement



variables



PersonnelManagement

Marketingmanagement

Bank Objectives

Market segmentation






service





them













By Zulfiqar Haider


BANKING










































Venture Capital



Growth Capital



Leveraged Buyout









ldquoThese are

long term


and cannot

be easily

disposed-offrdquo


















(i)

(ii)

(iii)





BANKING






of XYZ amp Co Ltd















Banking


Contribution of















By Aysha Noor


ISLAMIC BANKIG









Development

















society

























BOOK REVIEW








try overall

















WHAT IS THE CBPSB



INDEPENDENTADVISORY

PANEL













wwwcbpsborg

















profession







Mark Twain




Christo pher Rice






Interesting Quotes

Jokes






__________________________________________



The clerk replied



HUMOR AND QUOTES







editorial


















w







$

euro

PKRpound



COVER STORY 06

Cover Story


Prosperity

06

Global

Perspective


08


12


analytical model

16

15


22


26




Financial Landscape

32


36

Banking

MICRO SMALL















civil awards










Tel +92 (21) 3568 0783








+92 (21) 3562 1339 35277511

makramibporgpk






Copyright

















IBP publication(s)

The Institute of

Bankers Pakistan

Humor and Quotes

40

Book Review

Standard Bearer 42


38

Islamic Banking

38





$

euro

poundPKR

MICRO SMALL amp





across the globe

By M Ghalib Nishtar

COVER STORY




According to a

World Bank study


account for 30 of

GDP and contrib-

ute to 25 of

export earnings


































By Asif Ishaq


GLOBAL PERSPECTIVE

































advances














From 1992 to 1995

despite the weak


appreciated with no




bull

bull

bull

bull

bull

















bull

bull

bull

bull









TERRORIST FINANCING





















By Subtain Raza


GLOBAL PERSPECTIVE











Placement





Layering




Integration




rorist Financing








Smurfing



















of money launderers





tial method to move



fundsrdquo


and Terrorist

Financing crimes

are emerging

abruptly impacting

potential negative

consequences on

the economic polit-




Wire Transfers


















Integration

Layering


Placement


Money Laundering


Criminal Acts



Terrorist Financing






ments



Use of Trusts


























By Helena Tejero


GLOBAL PERSPECTIVE















bull

bull

bull

bull

bull

bull

bull


bull

bull

bull

bull

bull






































In 2005 the Banco









structuresrdquo













I m p a c t

Frequency




















banks









bull

bull

bull

bull

bull







Banking

















BANKING













Energy Crisis









Governance







High Trade Deficit













Fiscal Imbalances




Exports for FY13


During 2005-2014


3887280

37

2698910

26

1485569

14

1370196

13

1058617

10

Exports (in $ mln)


















NEEDfor Vast Spread

ATMsin Pakistan











By Muhammad Arifeen


BANKING






public places

























withdrawal




































BANKING







bull

bull







Intangibility




(ii) Inseparability






(v) Retaining






























bull

bull

bull

bull

bull

bull

bull

bull

bull

bull




BUSINESS

POLICY

Financialmanagement



variables



PersonnelManagement

Marketingmanagement

Bank Objectives

Market segmentation






service





them













By Zulfiqar Haider


BANKING










































Venture Capital



Growth Capital



Leveraged Buyout









ldquoThese are

long term


and cannot

be easily

disposed-offrdquo


















(i)

(ii)

(iii)





BANKING






of XYZ amp Co Ltd















Banking


Contribution of















By Aysha Noor


ISLAMIC BANKIG









Development

















society

























BOOK REVIEW








try overall

















WHAT IS THE CBPSB



INDEPENDENTADVISORY

PANEL













wwwcbpsborg

















profession







Mark Twain




Christo pher Rice






Interesting Quotes

Jokes






__________________________________________



The clerk replied



HUMOR AND QUOTES









$

euro

PKRpound



COVER STORY 06

Cover Story


Prosperity

06

Global

Perspective


08


12


analytical model

16

15


22


26




Financial Landscape

32


36

Banking

MICRO SMALL















civil awards










Tel +92 (21) 3568 0783








+92 (21) 3562 1339 35277511

makramibporgpk






Copyright

















IBP publication(s)

The Institute of

Bankers Pakistan

Humor and Quotes

40

Book Review

Standard Bearer 42


38

Islamic Banking

38





$

euro

poundPKR

MICRO SMALL amp





across the globe

By M Ghalib Nishtar

COVER STORY




According to a

World Bank study


account for 30 of

GDP and contrib-

ute to 25 of

export earnings


































By Asif Ishaq


GLOBAL PERSPECTIVE

































advances














From 1992 to 1995

despite the weak


appreciated with no




bull

bull

bull

bull

bull

















bull

bull

bull

bull









TERRORIST FINANCING





















By Subtain Raza


GLOBAL PERSPECTIVE











Placement





Layering




Integration




rorist Financing








Smurfing



















of money launderers





tial method to move



fundsrdquo


and Terrorist

Financing crimes

are emerging

abruptly impacting

potential negative

consequences on

the economic polit-




Wire Transfers


















Integration

Layering


Placement


Money Laundering


Criminal Acts



Terrorist Financing






ments



Use of Trusts


























By Helena Tejero


GLOBAL PERSPECTIVE















bull

bull

bull

bull

bull

bull

bull


bull

bull

bull

bull

bull






































In 2005 the Banco









structuresrdquo













I m p a c t

Frequency




















banks









bull

bull

bull

bull

bull







Banking

















BANKING













Energy Crisis









Governance







High Trade Deficit













Fiscal Imbalances




Exports for FY13


During 2005-2014


3887280

37

2698910

26

1485569

14

1370196

13

1058617

10

Exports (in $ mln)


















NEEDfor Vast Spread

ATMsin Pakistan











By Muhammad Arifeen


BANKING






public places

























withdrawal




































BANKING







bull

bull







Intangibility




(ii) Inseparability






(v) Retaining






























bull

bull

bull

bull

bull

bull

bull

bull

bull

bull




BUSINESS

POLICY

Financialmanagement



variables



PersonnelManagement

Marketingmanagement

Bank Objectives

Market segmentation






service





them













By Zulfiqar Haider


BANKING










































Venture Capital



Growth Capital



Leveraged Buyout









ldquoThese are

long term


and cannot

be easily

disposed-offrdquo


















(i)

(ii)

(iii)





BANKING






of XYZ amp Co Ltd















Banking


Contribution of















By Aysha Noor


ISLAMIC BANKIG









Development

















society

























BOOK REVIEW








try overall

















WHAT IS THE CBPSB



INDEPENDENTADVISORY

PANEL













wwwcbpsborg

















profession







Mark Twain




Christo pher Rice






Interesting Quotes

Jokes






__________________________________________



The clerk replied



HUMOR AND QUOTES







$

euro

PKRpound



COVER STORY 06

Cover Story


Prosperity

06

Global

Perspective


08


12


analytical model

16

15


22


26




Financial Landscape

32


36

Banking

MICRO SMALL















civil awards










Tel +92 (21) 3568 0783








+92 (21) 3562 1339 35277511

makramibporgpk






Copyright

















IBP publication(s)

The Institute of

Bankers Pakistan

Humor and Quotes

40

Book Review

Standard Bearer 42


38

Islamic Banking

38





$

euro

poundPKR

MICRO SMALL amp





across the globe

By M Ghalib Nishtar

COVER STORY




According to a

World Bank study


account for 30 of

GDP and contrib-

ute to 25 of

export earnings


































By Asif Ishaq


GLOBAL PERSPECTIVE

































advances














From 1992 to 1995

despite the weak


appreciated with no




bull

bull

bull

bull

bull

















bull

bull

bull

bull









TERRORIST FINANCING





















By Subtain Raza


GLOBAL PERSPECTIVE











Placement





Layering




Integration




rorist Financing








Smurfing



















of money launderers





tial method to move



fundsrdquo


and Terrorist

Financing crimes

are emerging

abruptly impacting

potential negative

consequences on

the economic polit-




Wire Transfers


















Integration

Layering


Placement


Money Laundering


Criminal Acts



Terrorist Financing






ments



Use of Trusts


























By Helena Tejero


GLOBAL PERSPECTIVE















bull

bull

bull

bull

bull

bull

bull


bull

bull

bull

bull

bull






































In 2005 the Banco









structuresrdquo













I m p a c t

Frequency




















banks









bull

bull

bull

bull

bull







Banking

















BANKING













Energy Crisis









Governance







High Trade Deficit













Fiscal Imbalances




Exports for FY13


During 2005-2014


3887280

37

2698910

26

1485569

14

1370196

13

1058617

10

Exports (in $ mln)


















NEEDfor Vast Spread

ATMsin Pakistan











By Muhammad Arifeen


BANKING






public places

























withdrawal




































BANKING







bull

bull







Intangibility




(ii) Inseparability






(v) Retaining






























bull

bull

bull

bull

bull

bull

bull

bull

bull

bull




BUSINESS

POLICY

Financialmanagement



variables



PersonnelManagement

Marketingmanagement

Bank Objectives

Market segmentation






service





them













By Zulfiqar Haider


BANKING










































Venture Capital



Growth Capital



Leveraged Buyout









ldquoThese are

long term


and cannot

be easily

disposed-offrdquo


















(i)

(ii)

(iii)





BANKING






of XYZ amp Co Ltd















Banking


Contribution of















By Aysha Noor


ISLAMIC BANKIG









Development

















society

























BOOK REVIEW








try overall

















WHAT IS THE CBPSB



INDEPENDENTADVISORY

PANEL













wwwcbpsborg

















profession







Mark Twain




Christo pher Rice






Interesting Quotes

Jokes






__________________________________________



The clerk replied



HUMOR AND QUOTES










Tel +92 (21) 3568 0783








+92 (21) 3562 1339 35277511

makramibporgpk






Copyright

















IBP publication(s)

The Institute of

Bankers Pakistan

Humor and Quotes

40

Book Review

Standard Bearer 42


38

Islamic Banking

38





$

euro

poundPKR

MICRO SMALL amp





across the globe

By M Ghalib Nishtar

COVER STORY




According to a

World Bank study


account for 30 of

GDP and contrib-

ute to 25 of

export earnings


































By Asif Ishaq


GLOBAL PERSPECTIVE

































advances














From 1992 to 1995

despite the weak


appreciated with no




bull

bull

bull

bull

bull

















bull

bull

bull

bull









TERRORIST FINANCING





















By Subtain Raza


GLOBAL PERSPECTIVE











Placement





Layering




Integration




rorist Financing








Smurfing



















of money launderers





tial method to move



fundsrdquo


and Terrorist

Financing crimes

are emerging

abruptly impacting

potential negative

consequences on

the economic polit-




Wire Transfers


















Integration

Layering


Placement


Money Laundering


Criminal Acts



Terrorist Financing






ments



Use of Trusts


























By Helena Tejero


GLOBAL PERSPECTIVE















bull

bull

bull

bull

bull

bull

bull


bull

bull

bull

bull

bull






































In 2005 the Banco









structuresrdquo













I m p a c t

Frequency




















banks









bull

bull

bull

bull

bull







Banking

















BANKING













Energy Crisis









Governance







High Trade Deficit













Fiscal Imbalances




Exports for FY13


During 2005-2014


3887280

37

2698910

26

1485569

14

1370196

13

1058617

10

Exports (in $ mln)


















NEEDfor Vast Spread

ATMsin Pakistan











By Muhammad Arifeen


BANKING






public places

























withdrawal




































BANKING







bull

bull







Intangibility




(ii) Inseparability






(v) Retaining






























bull

bull

bull

bull

bull

bull

bull

bull

bull

bull




BUSINESS

POLICY

Financialmanagement



variables



PersonnelManagement

Marketingmanagement

Bank Objectives

Market segmentation






service





them













By Zulfiqar Haider


BANKING










































Venture Capital



Growth Capital



Leveraged Buyout









ldquoThese are

long term


and cannot

be easily

disposed-offrdquo


















(i)

(ii)

(iii)





BANKING






of XYZ amp Co Ltd















Banking


Contribution of















By Aysha Noor


ISLAMIC BANKIG









Development

















society

























BOOK REVIEW








try overall

















WHAT IS THE CBPSB



INDEPENDENTADVISORY

PANEL













wwwcbpsborg

















profession







Mark Twain




Christo pher Rice






Interesting Quotes

Jokes






__________________________________________



The clerk replied



HUMOR AND QUOTES









$

euro

poundPKR

MICRO SMALL amp





across the globe

By M Ghalib Nishtar

COVER STORY




According to a

World Bank study


account for 30 of

GDP and contrib-

ute to 25 of

export earnings


































By Asif Ishaq


GLOBAL PERSPECTIVE

































advances














From 1992 to 1995

despite the weak


appreciated with no




bull

bull

bull

bull

bull

















bull

bull

bull

bull









TERRORIST FINANCING





















By Subtain Raza


GLOBAL PERSPECTIVE











Placement





Layering




Integration




rorist Financing








Smurfing



















of money launderers





tial method to move



fundsrdquo


and Terrorist

Financing crimes

are emerging

abruptly impacting

potential negative

consequences on

the economic polit-




Wire Transfers


















Integration

Layering


Placement


Money Laundering


Criminal Acts



Terrorist Financing






ments



Use of Trusts


























By Helena Tejero


GLOBAL PERSPECTIVE















bull

bull

bull

bull

bull

bull

bull


bull

bull

bull

bull

bull






































In 2005 the Banco









structuresrdquo













I m p a c t

Frequency




















banks









bull

bull

bull

bull

bull







Banking

















BANKING













Energy Crisis









Governance







High Trade Deficit













Fiscal Imbalances




Exports for FY13


During 2005-2014


3887280

37

2698910

26

1485569

14

1370196

13

1058617

10

Exports (in $ mln)


















NEEDfor Vast Spread

ATMsin Pakistan











By Muhammad Arifeen


BANKING






public places

























withdrawal




































BANKING







bull

bull







Intangibility




(ii) Inseparability






(v) Retaining






























bull

bull

bull

bull

bull

bull

bull

bull

bull

bull




BUSINESS

POLICY

Financialmanagement



variables



PersonnelManagement

Marketingmanagement

Bank Objectives

Market segmentation






service





them













By Zulfiqar Haider


BANKING










































Venture Capital



Growth Capital



Leveraged Buyout









ldquoThese are

long term


and cannot

be easily

disposed-offrdquo


















(i)

(ii)

(iii)





BANKING






of XYZ amp Co Ltd















Banking


Contribution of















By Aysha Noor


ISLAMIC BANKIG









Development

















society

























BOOK REVIEW








try overall

















WHAT IS THE CBPSB



INDEPENDENTADVISORY

PANEL













wwwcbpsborg

















profession







Mark Twain




Christo pher Rice






Interesting Quotes

Jokes






__________________________________________



The clerk replied



HUMOR AND QUOTES







$

euro

poundPKR

MICRO SMALL amp





across the globe

By M Ghalib Nishtar

COVER STORY




According to a

World Bank study


account for 30 of

GDP and contrib-

ute to 25 of

export earnings


































By Asif Ishaq


GLOBAL PERSPECTIVE

































advances














From 1992 to 1995

despite the weak


appreciated with no




bull

bull

bull

bull

bull

















bull

bull

bull

bull









TERRORIST FINANCING





















By Subtain Raza


GLOBAL PERSPECTIVE











Placement





Layering




Integration




rorist Financing








Smurfing



















of money launderers





tial method to move



fundsrdquo


and Terrorist

Financing crimes

are emerging

abruptly impacting

potential negative

consequences on

the economic polit-




Wire Transfers


















Integration

Layering


Placement


Money Laundering


Criminal Acts



Terrorist Financing






ments



Use of Trusts


























By Helena Tejero


GLOBAL PERSPECTIVE















bull

bull

bull

bull

bull

bull

bull


bull

bull

bull

bull

bull






































In 2005 the Banco









structuresrdquo













I m p a c t

Frequency




















banks









bull

bull

bull

bull

bull







Banking

















BANKING













Energy Crisis









Governance







High Trade Deficit













Fiscal Imbalances




Exports for FY13


During 2005-2014


3887280

37

2698910

26

1485569

14

1370196

13

1058617

10

Exports (in $ mln)


















NEEDfor Vast Spread

ATMsin Pakistan











By Muhammad Arifeen


BANKING






public places

























withdrawal




































BANKING







bull

bull







Intangibility




(ii) Inseparability






(v) Retaining






























bull

bull

bull

bull

bull

bull

bull

bull

bull

bull




BUSINESS

POLICY

Financialmanagement



variables



PersonnelManagement

Marketingmanagement

Bank Objectives

Market segmentation






service





them













By Zulfiqar Haider


BANKING










































Venture Capital



Growth Capital



Leveraged Buyout









ldquoThese are

long term


and cannot

be easily

disposed-offrdquo


















(i)

(ii)

(iii)





BANKING






of XYZ amp Co Ltd















Banking


Contribution of















By Aysha Noor


ISLAMIC BANKIG









Development

















society

























BOOK REVIEW








try overall

















WHAT IS THE CBPSB



INDEPENDENTADVISORY

PANEL













wwwcbpsborg

















profession







Mark Twain




Christo pher Rice






Interesting Quotes

Jokes






__________________________________________



The clerk replied



HUMOR AND QUOTES







According to a

World Bank study


account for 30 of

GDP and contrib-

ute to 25 of

export earnings


































By Asif Ishaq


GLOBAL PERSPECTIVE

































advances














From 1992 to 1995

despite the weak


appreciated with no




bull

bull

bull

bull

bull

















bull

bull

bull

bull









TERRORIST FINANCING





















By Subtain Raza


GLOBAL PERSPECTIVE











Placement





Layering




Integration




rorist Financing








Smurfing



















of money launderers





tial method to move



fundsrdquo


and Terrorist

Financing crimes

are emerging

abruptly impacting

potential negative

consequences on

the economic polit-




Wire Transfers


















Integration

Layering


Placement


Money Laundering


Criminal Acts



Terrorist Financing






ments



Use of Trusts


























By Helena Tejero


GLOBAL PERSPECTIVE















bull

bull

bull

bull

bull

bull

bull


bull

bull

bull

bull

bull






































In 2005 the Banco









structuresrdquo













I m p a c t

Frequency




















banks









bull

bull

bull

bull

bull







Banking

















BANKING













Energy Crisis









Governance







High Trade Deficit













Fiscal Imbalances




Exports for FY13


During 2005-2014


3887280

37

2698910

26

1485569

14

1370196

13

1058617

10

Exports (in $ mln)


















NEEDfor Vast Spread

ATMsin Pakistan











By Muhammad Arifeen


BANKING






public places

























withdrawal




































BANKING







bull

bull







Intangibility




(ii) Inseparability






(v) Retaining






























bull

bull

bull

bull

bull

bull

bull

bull

bull

bull




BUSINESS

POLICY

Financialmanagement



variables



PersonnelManagement

Marketingmanagement

Bank Objectives

Market segmentation






service





them













By Zulfiqar Haider


BANKING










































Venture Capital



Growth Capital



Leveraged Buyout









ldquoThese are

long term


and cannot

be easily

disposed-offrdquo


















(i)

(ii)

(iii)





BANKING






of XYZ amp Co Ltd















Banking


Contribution of















By Aysha Noor


ISLAMIC BANKIG









Development

















society

























BOOK REVIEW








try overall

















WHAT IS THE CBPSB



INDEPENDENTADVISORY

PANEL













wwwcbpsborg

















profession







Mark Twain




Christo pher Rice






Interesting Quotes

Jokes






__________________________________________



The clerk replied



HUMOR AND QUOTES
















By Asif Ishaq


GLOBAL PERSPECTIVE

































advances














From 1992 to 1995

despite the weak


appreciated with no




bull

bull

bull

bull

bull

















bull

bull

bull

bull









TERRORIST FINANCING





















By Subtain Raza


GLOBAL PERSPECTIVE











Placement





Layering




Integration




rorist Financing








Smurfing



















of money launderers





tial method to move



fundsrdquo


and Terrorist

Financing crimes

are emerging

abruptly impacting

potential negative

consequences on

the economic polit-




Wire Transfers


















Integration

Layering


Placement


Money Laundering


Criminal Acts



Terrorist Financing






ments



Use of Trusts


























By Helena Tejero


GLOBAL PERSPECTIVE















bull

bull

bull

bull

bull

bull

bull


bull

bull

bull

bull

bull






































In 2005 the Banco









structuresrdquo













I m p a c t

Frequency




















banks









bull

bull

bull

bull

bull







Banking

















BANKING













Energy Crisis









Governance







High Trade Deficit













Fiscal Imbalances




Exports for FY13


During 2005-2014


3887280

37

2698910

26

1485569

14

1370196

13

1058617

10

Exports (in $ mln)


















NEEDfor Vast Spread

ATMsin Pakistan











By Muhammad Arifeen


BANKING






public places

























withdrawal




































BANKING







bull

bull







Intangibility




(ii) Inseparability






(v) Retaining






























bull

bull

bull

bull

bull

bull

bull

bull

bull

bull




BUSINESS

POLICY

Financialmanagement



variables



PersonnelManagement

Marketingmanagement

Bank Objectives

Market segmentation






service





them













By Zulfiqar Haider


BANKING










































Venture Capital



Growth Capital



Leveraged Buyout









ldquoThese are

long term


and cannot

be easily

disposed-offrdquo


















(i)

(ii)

(iii)





BANKING






of XYZ amp Co Ltd















Banking


Contribution of















By Aysha Noor


ISLAMIC BANKIG









Development

















society

























BOOK REVIEW








try overall

















WHAT IS THE CBPSB



INDEPENDENTADVISORY

PANEL













wwwcbpsborg

















profession







Mark Twain




Christo pher Rice






Interesting Quotes

Jokes






__________________________________________



The clerk replied



HUMOR AND QUOTES





































advances














From 1992 to 1995

despite the weak


appreciated with no




bull

bull

bull

bull

bull

















bull

bull

bull

bull









TERRORIST FINANCING





















By Subtain Raza


GLOBAL PERSPECTIVE











Placement





Layering




Integration




rorist Financing








Smurfing



















of money launderers





tial method to move



fundsrdquo


and Terrorist

Financing crimes

are emerging

abruptly impacting

potential negative

consequences on

the economic polit-




Wire Transfers


















Integration

Layering


Placement


Money Laundering


Criminal Acts



Terrorist Financing






ments



Use of Trusts


























By Helena Tejero


GLOBAL PERSPECTIVE















bull

bull

bull

bull

bull

bull

bull


bull

bull

bull

bull

bull






































In 2005 the Banco









structuresrdquo













I m p a c t

Frequency




















banks









bull

bull

bull

bull

bull







Banking

















BANKING













Energy Crisis









Governance







High Trade Deficit













Fiscal Imbalances




Exports for FY13


During 2005-2014


3887280

37

2698910

26

1485569

14

1370196

13

1058617

10

Exports (in $ mln)


















NEEDfor Vast Spread

ATMsin Pakistan











By Muhammad Arifeen


BANKING






public places

























withdrawal




































BANKING







bull

bull







Intangibility




(ii) Inseparability






(v) Retaining






























bull

bull

bull

bull

bull

bull

bull

bull

bull

bull




BUSINESS

POLICY

Financialmanagement



variables



PersonnelManagement

Marketingmanagement

Bank Objectives

Market segmentation






service





them













By Zulfiqar Haider


BANKING










































Venture Capital



Growth Capital



Leveraged Buyout









ldquoThese are

long term


and cannot

be easily

disposed-offrdquo


















(i)

(ii)

(iii)





BANKING






of XYZ amp Co Ltd















Banking


Contribution of















By Aysha Noor


ISLAMIC BANKIG









Development

















society

























BOOK REVIEW








try overall

















WHAT IS THE CBPSB



INDEPENDENTADVISORY

PANEL













wwwcbpsborg

















profession







Mark Twain




Christo pher Rice






Interesting Quotes

Jokes






__________________________________________



The clerk replied



HUMOR AND QUOTES


















advances














From 1992 to 1995

despite the weak


appreciated with no




bull

bull

bull

bull

bull

















bull

bull

bull

bull









TERRORIST FINANCING





















By Subtain Raza


GLOBAL PERSPECTIVE











Placement





Layering




Integration




rorist Financing








Smurfing



















of money launderers





tial method to move



fundsrdquo


and Terrorist

Financing crimes

are emerging

abruptly impacting

potential negative

consequences on

the economic polit-




Wire Transfers


















Integration

Layering


Placement


Money Laundering


Criminal Acts



Terrorist Financing






ments



Use of Trusts


























By Helena Tejero


GLOBAL PERSPECTIVE















bull

bull

bull

bull

bull

bull

bull


bull

bull

bull

bull

bull






































In 2005 the Banco









structuresrdquo













I m p a c t

Frequency




















banks









bull

bull

bull

bull

bull







Banking

















BANKING













Energy Crisis









Governance







High Trade Deficit













Fiscal Imbalances




Exports for FY13


During 2005-2014


3887280

37

2698910

26

1485569

14

1370196

13

1058617

10

Exports (in $ mln)


















NEEDfor Vast Spread

ATMsin Pakistan











By Muhammad Arifeen


BANKING






public places

























withdrawal




































BANKING







bull

bull







Intangibility




(ii) Inseparability






(v) Retaining






























bull

bull

bull

bull

bull

bull

bull

bull

bull

bull




BUSINESS

POLICY

Financialmanagement



variables



PersonnelManagement

Marketingmanagement

Bank Objectives

Market segmentation






service





them













By Zulfiqar Haider


BANKING










































Venture Capital



Growth Capital



Leveraged Buyout









ldquoThese are

long term


and cannot

be easily

disposed-offrdquo


















(i)

(ii)

(iii)





BANKING






of XYZ amp Co Ltd















Banking


Contribution of















By Aysha Noor


ISLAMIC BANKIG









Development

















society

























BOOK REVIEW








try overall

















WHAT IS THE CBPSB



INDEPENDENTADVISORY

PANEL













wwwcbpsborg

















profession







Mark Twain




Christo pher Rice






Interesting Quotes

Jokes






__________________________________________



The clerk replied



HUMOR AND QUOTES







From 1992 to 1995

despite the weak


appreciated with no




bull

bull

bull

bull

bull

















bull

bull

bull

bull









TERRORIST FINANCING





















By Subtain Raza


GLOBAL PERSPECTIVE











Placement





Layering




Integration




rorist Financing








Smurfing



















of money launderers





tial method to move



fundsrdquo


and Terrorist

Financing crimes

are emerging

abruptly impacting

potential negative

consequences on

the economic polit-




Wire Transfers


















Integration

Layering


Placement


Money Laundering


Criminal Acts



Terrorist Financing






ments



Use of Trusts


























By Helena Tejero


GLOBAL PERSPECTIVE















bull

bull

bull

bull

bull

bull

bull


bull

bull

bull

bull

bull






































In 2005 the Banco









structuresrdquo













I m p a c t

Frequency




















banks









bull

bull

bull

bull

bull







Banking

















BANKING













Energy Crisis









Governance







High Trade Deficit













Fiscal Imbalances




Exports for FY13


During 2005-2014


3887280

37

2698910

26

1485569

14

1370196

13

1058617

10

Exports (in $ mln)


















NEEDfor Vast Spread

ATMsin Pakistan











By Muhammad Arifeen


BANKING






public places

























withdrawal




































BANKING







bull

bull







Intangibility




(ii) Inseparability






(v) Retaining






























bull

bull

bull

bull

bull

bull

bull

bull

bull

bull




BUSINESS

POLICY

Financialmanagement



variables



PersonnelManagement

Marketingmanagement

Bank Objectives

Market segmentation






service





them













By Zulfiqar Haider


BANKING










































Venture Capital



Growth Capital



Leveraged Buyout









ldquoThese are

long term


and cannot

be easily

disposed-offrdquo


















(i)

(ii)

(iii)





BANKING






of XYZ amp Co Ltd















Banking


Contribution of















By Aysha Noor


ISLAMIC BANKIG









Development

















society

























BOOK REVIEW








try overall

















WHAT IS THE CBPSB



INDEPENDENTADVISORY

PANEL













wwwcbpsborg

















profession







Mark Twain




Christo pher Rice






Interesting Quotes

Jokes






__________________________________________



The clerk replied



HUMOR AND QUOTES








TERRORIST FINANCING





















By Subtain Raza


GLOBAL PERSPECTIVE











Placement





Layering




Integration




rorist Financing








Smurfing



















of money launderers





tial method to move



fundsrdquo


and Terrorist

Financing crimes

are emerging

abruptly impacting

potential negative

consequences on

the economic polit-




Wire Transfers


















Integration

Layering


Placement


Money Laundering


Criminal Acts



Terrorist Financing






ments



Use of Trusts


























By Helena Tejero


GLOBAL PERSPECTIVE















bull

bull

bull

bull

bull

bull

bull


bull

bull

bull

bull

bull






































In 2005 the Banco









structuresrdquo













I m p a c t

Frequency




















banks









bull

bull

bull

bull

bull







Banking

















BANKING













Energy Crisis









Governance







High Trade Deficit













Fiscal Imbalances




Exports for FY13


During 2005-2014


3887280

37

2698910

26

1485569

14

1370196

13

1058617

10

Exports (in $ mln)


















NEEDfor Vast Spread

ATMsin Pakistan











By Muhammad Arifeen


BANKING






public places

























withdrawal




































BANKING







bull

bull







Intangibility




(ii) Inseparability






(v) Retaining






























bull

bull

bull

bull

bull

bull

bull

bull

bull

bull




BUSINESS

POLICY

Financialmanagement



variables



PersonnelManagement

Marketingmanagement

Bank Objectives

Market segmentation






service





them













By Zulfiqar Haider


BANKING










































Venture Capital



Growth Capital



Leveraged Buyout









ldquoThese are

long term


and cannot

be easily

disposed-offrdquo


















(i)

(ii)

(iii)





BANKING






of XYZ amp Co Ltd















Banking


Contribution of















By Aysha Noor


ISLAMIC BANKIG









Development

















society

























BOOK REVIEW








try overall

















WHAT IS THE CBPSB



INDEPENDENTADVISORY

PANEL













wwwcbpsborg

















profession







Mark Twain




Christo pher Rice






Interesting Quotes

Jokes






__________________________________________



The clerk replied



HUMOR AND QUOTES















Placement





Layering




Integration




rorist Financing








Smurfing



















of money launderers





tial method to move



fundsrdquo


and Terrorist

Financing crimes

are emerging

abruptly impacting

potential negative

consequences on

the economic polit-




Wire Transfers


















Integration

Layering


Placement


Money Laundering


Criminal Acts



Terrorist Financing






ments



Use of Trusts


























By Helena Tejero


GLOBAL PERSPECTIVE















bull

bull

bull

bull

bull

bull

bull


bull

bull

bull

bull

bull






































In 2005 the Banco









structuresrdquo













I m p a c t

Frequency




















banks









bull

bull

bull

bull

bull







Banking

















BANKING













Energy Crisis









Governance







High Trade Deficit













Fiscal Imbalances




Exports for FY13


During 2005-2014


3887280

37

2698910

26

1485569

14

1370196

13

1058617

10

Exports (in $ mln)


















NEEDfor Vast Spread

ATMsin Pakistan











By Muhammad Arifeen


BANKING






public places

























withdrawal




































BANKING







bull

bull







Intangibility




(ii) Inseparability






(v) Retaining






























bull

bull

bull

bull

bull

bull

bull

bull

bull

bull




BUSINESS

POLICY

Financialmanagement



variables



PersonnelManagement

Marketingmanagement

Bank Objectives

Market segmentation






service





them













By Zulfiqar Haider


BANKING










































Venture Capital



Growth Capital



Leveraged Buyout









ldquoThese are

long term


and cannot

be easily

disposed-offrdquo


















(i)

(ii)

(iii)





BANKING






of XYZ amp Co Ltd















Banking


Contribution of















By Aysha Noor


ISLAMIC BANKIG









Development

















society

























BOOK REVIEW








try overall

















WHAT IS THE CBPSB



INDEPENDENTADVISORY

PANEL













wwwcbpsborg

















profession







Mark Twain




Christo pher Rice






Interesting Quotes

Jokes






__________________________________________



The clerk replied



HUMOR AND QUOTES












of money launderers





tial method to move



fundsrdquo


and Terrorist

Financing crimes

are emerging

abruptly impacting

potential negative

consequences on

the economic polit-




Wire Transfers


















Integration

Layering


Placement


Money Laundering


Criminal Acts



Terrorist Financing






ments



Use of Trusts


























By Helena Tejero


GLOBAL PERSPECTIVE















bull

bull

bull

bull

bull

bull

bull


bull

bull

bull

bull

bull






































In 2005 the Banco









structuresrdquo













I m p a c t

Frequency




















banks









bull

bull

bull

bull

bull







Banking

















BANKING













Energy Crisis









Governance







High Trade Deficit













Fiscal Imbalances




Exports for FY13


During 2005-2014


3887280

37

2698910

26

1485569

14

1370196

13

1058617

10

Exports (in $ mln)


















NEEDfor Vast Spread

ATMsin Pakistan











By Muhammad Arifeen


BANKING






public places

























withdrawal




































BANKING







bull

bull







Intangibility




(ii) Inseparability






(v) Retaining






























bull

bull

bull

bull

bull

bull

bull

bull

bull

bull




BUSINESS

POLICY

Financialmanagement



variables



PersonnelManagement

Marketingmanagement

Bank Objectives

Market segmentation






service





them













By Zulfiqar Haider


BANKING










































Venture Capital



Growth Capital



Leveraged Buyout









ldquoThese are

long term


and cannot

be easily

disposed-offrdquo


















(i)

(ii)

(iii)





BANKING






of XYZ amp Co Ltd















Banking


Contribution of















By Aysha Noor


ISLAMIC BANKIG









Development

















society

























BOOK REVIEW








try overall

















WHAT IS THE CBPSB



INDEPENDENTADVISORY

PANEL













wwwcbpsborg

















profession







Mark Twain




Christo pher Rice






Interesting Quotes

Jokes






__________________________________________



The clerk replied



HUMOR AND QUOTES









ments



Use of Trusts


























By Helena Tejero


GLOBAL PERSPECTIVE















bull

bull

bull

bull

bull

bull

bull


bull

bull

bull

bull

bull






































In 2005 the Banco









structuresrdquo













I m p a c t

Frequency




















banks









bull

bull

bull

bull

bull







Banking

















BANKING













Energy Crisis









Governance







High Trade Deficit













Fiscal Imbalances




Exports for FY13


During 2005-2014


3887280

37

2698910

26

1485569

14

1370196

13

1058617

10

Exports (in $ mln)


















NEEDfor Vast Spread

ATMsin Pakistan











By Muhammad Arifeen


BANKING






public places

























withdrawal




































BANKING







bull

bull







Intangibility




(ii) Inseparability






(v) Retaining






























bull

bull

bull

bull

bull

bull

bull

bull

bull

bull




BUSINESS

POLICY

Financialmanagement



variables



PersonnelManagement

Marketingmanagement

Bank Objectives

Market segmentation






service





them













By Zulfiqar Haider


BANKING










































Venture Capital



Growth Capital



Leveraged Buyout









ldquoThese are

long term


and cannot

be easily

disposed-offrdquo


















(i)

(ii)

(iii)





BANKING






of XYZ amp Co Ltd















Banking


Contribution of















By Aysha Noor


ISLAMIC BANKIG









Development

















society

























BOOK REVIEW








try overall

















WHAT IS THE CBPSB



INDEPENDENTADVISORY

PANEL













wwwcbpsborg

















profession







Mark Twain




Christo pher Rice






Interesting Quotes

Jokes






__________________________________________



The clerk replied



HUMOR AND QUOTES


















By Helena Tejero


GLOBAL PERSPECTIVE















bull

bull

bull

bull

bull

bull

bull


bull

bull

bull

bull

bull






































In 2005 the Banco









structuresrdquo













I m p a c t

Frequency




















banks









bull

bull

bull

bull

bull







Banking

















BANKING













Energy Crisis









Governance







High Trade Deficit













Fiscal Imbalances




Exports for FY13


During 2005-2014


3887280

37

2698910

26

1485569

14

1370196

13

1058617

10

Exports (in $ mln)


















NEEDfor Vast Spread

ATMsin Pakistan











By Muhammad Arifeen


BANKING






public places

























withdrawal




































BANKING







bull

bull







Intangibility




(ii) Inseparability






(v) Retaining






























bull

bull

bull

bull

bull

bull

bull

bull

bull

bull




BUSINESS

POLICY

Financialmanagement



variables



PersonnelManagement

Marketingmanagement

Bank Objectives

Market segmentation






service





them













By Zulfiqar Haider


BANKING










































Venture Capital



Growth Capital



Leveraged Buyout









ldquoThese are

long term


and cannot

be easily

disposed-offrdquo


















(i)

(ii)

(iii)





BANKING






of XYZ amp Co Ltd















Banking


Contribution of















By Aysha Noor


ISLAMIC BANKIG









Development

















society

























BOOK REVIEW








try overall

















WHAT IS THE CBPSB



INDEPENDENTADVISORY

PANEL













wwwcbpsborg

















profession







Mark Twain




Christo pher Rice






Interesting Quotes

Jokes






__________________________________________



The clerk replied



HUMOR AND QUOTES



















bull

bull

bull

bull

bull

bull

bull


bull

bull

bull

bull

bull






































In 2005 the Banco









structuresrdquo













I m p a c t

Frequency




















banks









bull

bull

bull

bull

bull







Banking

















BANKING













Energy Crisis









Governance







High Trade Deficit













Fiscal Imbalances




Exports for FY13


During 2005-2014


3887280

37

2698910

26

1485569

14

1370196

13

1058617

10

Exports (in $ mln)


















NEEDfor Vast Spread

ATMsin Pakistan











By Muhammad Arifeen


BANKING






public places

























withdrawal




































BANKING







bull

bull







Intangibility




(ii) Inseparability






(v) Retaining






























bull

bull

bull

bull

bull

bull

bull

bull

bull

bull




BUSINESS

POLICY

Financialmanagement



variables



PersonnelManagement

Marketingmanagement

Bank Objectives

Market segmentation






service





them













By Zulfiqar Haider


BANKING










































Venture Capital



Growth Capital



Leveraged Buyout









ldquoThese are

long term


and cannot

be easily

disposed-offrdquo


















(i)

(ii)

(iii)





BANKING






of XYZ amp Co Ltd















Banking


Contribution of















By Aysha Noor


ISLAMIC BANKIG









Development

















society

























BOOK REVIEW








try overall

















WHAT IS THE CBPSB



INDEPENDENTADVISORY

PANEL













wwwcbpsborg

















profession







Mark Twain




Christo pher Rice






Interesting Quotes

Jokes






__________________________________________



The clerk replied



HUMOR AND QUOTES
























In 2005 the Banco









structuresrdquo













I m p a c t

Frequency




















banks









bull

bull

bull

bull

bull







Banking

















BANKING













Energy Crisis









Governance







High Trade Deficit













Fiscal Imbalances




Exports for FY13


During 2005-2014


3887280

37

2698910

26

1485569

14

1370196

13

1058617

10

Exports (in $ mln)


















NEEDfor Vast Spread

ATMsin Pakistan











By Muhammad Arifeen


BANKING






public places

























withdrawal




































BANKING







bull

bull







Intangibility




(ii) Inseparability






(v) Retaining






























bull

bull

bull

bull

bull

bull

bull

bull

bull

bull




BUSINESS

POLICY

Financialmanagement



variables



PersonnelManagement

Marketingmanagement

Bank Objectives

Market segmentation






service





them













By Zulfiqar Haider


BANKING










































Venture Capital



Growth Capital



Leveraged Buyout









ldquoThese are

long term


and cannot

be easily

disposed-offrdquo


















(i)

(ii)

(iii)





BANKING






of XYZ amp Co Ltd















Banking


Contribution of















By Aysha Noor


ISLAMIC BANKIG









Development

















society

























BOOK REVIEW








try overall

















WHAT IS THE CBPSB



INDEPENDENTADVISORY

PANEL













wwwcbpsborg

















profession







Mark Twain




Christo pher Rice






Interesting Quotes

Jokes






__________________________________________



The clerk replied



HUMOR AND QUOTES
















I m p a c t

Frequency




















banks









bull

bull

bull

bull

bull







Banking

















BANKING













Energy Crisis









Governance







High Trade Deficit













Fiscal Imbalances




Exports for FY13


During 2005-2014


3887280

37

2698910

26

1485569

14

1370196

13

1058617

10

Exports (in $ mln)


















NEEDfor Vast Spread

ATMsin Pakistan











By Muhammad Arifeen


BANKING






public places

























withdrawal




































BANKING







bull

bull







Intangibility




(ii) Inseparability






(v) Retaining






























bull

bull

bull

bull

bull

bull

bull

bull

bull

bull




BUSINESS

POLICY

Financialmanagement



variables



PersonnelManagement

Marketingmanagement

Bank Objectives

Market segmentation






service





them













By Zulfiqar Haider


BANKING










































Venture Capital



Growth Capital



Leveraged Buyout









ldquoThese are

long term


and cannot

be easily

disposed-offrdquo


















(i)

(ii)

(iii)





BANKING






of XYZ amp Co Ltd















Banking


Contribution of















By Aysha Noor


ISLAMIC BANKIG









Development

















society

























BOOK REVIEW








try overall

















WHAT IS THE CBPSB



INDEPENDENTADVISORY

PANEL













wwwcbpsborg

















profession







Mark Twain




Christo pher Rice






Interesting Quotes

Jokes






__________________________________________



The clerk replied



HUMOR AND QUOTES












banks









bull

bull

bull

bull

bull







Banking

















BANKING













Energy Crisis









Governance







High Trade Deficit













Fiscal Imbalances




Exports for FY13


During 2005-2014


3887280

37

2698910

26

1485569

14

1370196

13

1058617

10

Exports (in $ mln)


















NEEDfor Vast Spread

ATMsin Pakistan











By Muhammad Arifeen


BANKING






public places

























withdrawal




































BANKING







bull

bull







Intangibility




(ii) Inseparability






(v) Retaining






























bull

bull

bull

bull

bull

bull

bull

bull

bull

bull




BUSINESS

POLICY

Financialmanagement



variables



PersonnelManagement

Marketingmanagement

Bank Objectives

Market segmentation






service





them













By Zulfiqar Haider


BANKING










































Venture Capital



Growth Capital



Leveraged Buyout









ldquoThese are

long term


and cannot

be easily

disposed-offrdquo


















(i)

(ii)

(iii)





BANKING






of XYZ amp Co Ltd















Banking


Contribution of















By Aysha Noor


ISLAMIC BANKIG









Development

















society

























BOOK REVIEW








try overall

















WHAT IS THE CBPSB



INDEPENDENTADVISORY

PANEL













wwwcbpsborg

















profession







Mark Twain




Christo pher Rice






Interesting Quotes

Jokes






__________________________________________



The clerk replied



HUMOR AND QUOTES









Banking

















BANKING













Energy Crisis









Governance







High Trade Deficit













Fiscal Imbalances




Exports for FY13


During 2005-2014


3887280

37

2698910

26

1485569

14

1370196

13

1058617

10

Exports (in $ mln)


















NEEDfor Vast Spread

ATMsin Pakistan











By Muhammad Arifeen


BANKING






public places

























withdrawal




































BANKING







bull

bull







Intangibility




(ii) Inseparability






(v) Retaining






























bull

bull

bull

bull

bull

bull

bull

bull

bull

bull




BUSINESS

POLICY

Financialmanagement



variables



PersonnelManagement

Marketingmanagement

Bank Objectives

Market segmentation






service





them













By Zulfiqar Haider


BANKING










































Venture Capital



Growth Capital



Leveraged Buyout









ldquoThese are

long term


and cannot

be easily

disposed-offrdquo


















(i)

(ii)

(iii)





BANKING






of XYZ amp Co Ltd















Banking


Contribution of















By Aysha Noor


ISLAMIC BANKIG









Development

















society

























BOOK REVIEW








try overall

















WHAT IS THE CBPSB



INDEPENDENTADVISORY

PANEL













wwwcbpsborg

















profession







Mark Twain




Christo pher Rice






Interesting Quotes

Jokes






__________________________________________



The clerk replied



HUMOR AND QUOTES







Banking

















BANKING













Energy Crisis









Governance







High Trade Deficit













Fiscal Imbalances




Exports for FY13


During 2005-2014


3887280

37

2698910

26

1485569

14

1370196

13

1058617

10

Exports (in $ mln)


















NEEDfor Vast Spread

ATMsin Pakistan











By Muhammad Arifeen


BANKING






public places

























withdrawal




































BANKING







bull

bull







Intangibility




(ii) Inseparability






(v) Retaining






























bull

bull

bull

bull

bull

bull

bull

bull

bull

bull




BUSINESS

POLICY

Financialmanagement



variables



PersonnelManagement

Marketingmanagement

Bank Objectives

Market segmentation






service





them













By Zulfiqar Haider


BANKING










































Venture Capital



Growth Capital



Leveraged Buyout









ldquoThese are

long term


and cannot

be easily

disposed-offrdquo


















(i)

(ii)

(iii)





BANKING






of XYZ amp Co Ltd















Banking


Contribution of















By Aysha Noor


ISLAMIC BANKIG









Development

















society

























BOOK REVIEW








try overall

















WHAT IS THE CBPSB



INDEPENDENTADVISORY

PANEL













wwwcbpsborg

















profession







Mark Twain




Christo pher Rice






Interesting Quotes

Jokes






__________________________________________



The clerk replied



HUMOR AND QUOTES

















Energy Crisis









Governance







High Trade Deficit













Fiscal Imbalances




Exports for FY13


During 2005-2014


3887280

37

2698910

26

1485569

14

1370196

13

1058617

10

Exports (in $ mln)


















NEEDfor Vast Spread

ATMsin Pakistan











By Muhammad Arifeen


BANKING






public places

























withdrawal




































BANKING







bull

bull







Intangibility




(ii) Inseparability






(v) Retaining






























bull

bull

bull

bull

bull

bull

bull

bull

bull

bull




BUSINESS

POLICY

Financialmanagement



variables



PersonnelManagement

Marketingmanagement

Bank Objectives

Market segmentation






service





them













By Zulfiqar Haider


BANKING










































Venture Capital



Growth Capital



Leveraged Buyout









ldquoThese are

long term


and cannot

be easily

disposed-offrdquo


















(i)

(ii)

(iii)





BANKING






of XYZ amp Co Ltd















Banking


Contribution of















By Aysha Noor


ISLAMIC BANKIG









Development

















society

























BOOK REVIEW








try overall

















WHAT IS THE CBPSB



INDEPENDENTADVISORY

PANEL













wwwcbpsborg

















profession







Mark Twain




Christo pher Rice






Interesting Quotes

Jokes






__________________________________________



The clerk replied



HUMOR AND QUOTES











Fiscal Imbalances




Exports for FY13


During 2005-2014


3887280

37

2698910

26

1485569

14

1370196

13

1058617

10

Exports (in $ mln)


















NEEDfor Vast Spread

ATMsin Pakistan











By Muhammad Arifeen


BANKING






public places

























withdrawal




































BANKING







bull

bull







Intangibility




(ii) Inseparability






(v) Retaining






























bull

bull

bull

bull

bull

bull

bull

bull

bull

bull




BUSINESS

POLICY

Financialmanagement



variables



PersonnelManagement

Marketingmanagement

Bank Objectives

Market segmentation






service





them













By Zulfiqar Haider


BANKING










































Venture Capital



Growth Capital



Leveraged Buyout









ldquoThese are

long term


and cannot

be easily

disposed-offrdquo


















(i)

(ii)

(iii)





BANKING






of XYZ amp Co Ltd















Banking


Contribution of















By Aysha Noor


ISLAMIC BANKIG









Development

















society

























BOOK REVIEW








try overall

















WHAT IS THE CBPSB



INDEPENDENTADVISORY

PANEL













wwwcbpsborg

















profession







Mark Twain




Christo pher Rice






Interesting Quotes

Jokes






__________________________________________



The clerk replied



HUMOR AND QUOTES









NEEDfor Vast Spread

ATMsin Pakistan











By Muhammad Arifeen


BANKING






public places

























withdrawal




































BANKING







bull

bull







Intangibility




(ii) Inseparability






(v) Retaining






























bull

bull

bull

bull

bull

bull

bull

bull

bull

bull




BUSINESS

POLICY

Financialmanagement



variables



PersonnelManagement

Marketingmanagement

Bank Objectives

Market segmentation






service





them













By Zulfiqar Haider


BANKING










































Venture Capital



Growth Capital



Leveraged Buyout









ldquoThese are

long term


and cannot

be easily

disposed-offrdquo


















(i)

(ii)

(iii)





BANKING






of XYZ amp Co Ltd















Banking


Contribution of















By Aysha Noor


ISLAMIC BANKIG









Development

















society

























BOOK REVIEW








try overall

















WHAT IS THE CBPSB



INDEPENDENTADVISORY

PANEL













wwwcbpsborg

















profession







Mark Twain




Christo pher Rice






Interesting Quotes

Jokes






__________________________________________



The clerk replied



HUMOR AND QUOTES







NEEDfor Vast Spread

ATMsin Pakistan











By Muhammad Arifeen


BANKING






public places

























withdrawal




































BANKING







bull

bull







Intangibility




(ii) Inseparability






(v) Retaining






























bull

bull

bull

bull

bull

bull

bull

bull

bull

bull




BUSINESS

POLICY

Financialmanagement



variables



PersonnelManagement

Marketingmanagement

Bank Objectives

Market segmentation






service





them













By Zulfiqar Haider


BANKING










































Venture Capital



Growth Capital



Leveraged Buyout









ldquoThese are

long term


and cannot

be easily

disposed-offrdquo


















(i)

(ii)

(iii)





BANKING






of XYZ amp Co Ltd















Banking


Contribution of















By Aysha Noor


ISLAMIC BANKIG









Development

















society

























BOOK REVIEW








try overall

















WHAT IS THE CBPSB



INDEPENDENTADVISORY

PANEL













wwwcbpsborg

















profession







Mark Twain




Christo pher Rice






Interesting Quotes

Jokes






__________________________________________



The clerk replied



HUMOR AND QUOTES










public places

























withdrawal




































BANKING







bull

bull







Intangibility




(ii) Inseparability






(v) Retaining






























bull

bull

bull

bull

bull

bull

bull

bull

bull

bull




BUSINESS

POLICY

Financialmanagement



variables



PersonnelManagement

Marketingmanagement

Bank Objectives

Market segmentation






service





them













By Zulfiqar Haider


BANKING










































Venture Capital



Growth Capital



Leveraged Buyout









ldquoThese are

long term


and cannot

be easily

disposed-offrdquo


















(i)

(ii)

(iii)





BANKING






of XYZ amp Co Ltd















Banking


Contribution of















By Aysha Noor


ISLAMIC BANKIG









Development

















society

























BOOK REVIEW








try overall

















WHAT IS THE CBPSB



INDEPENDENTADVISORY

PANEL













wwwcbpsborg

















profession







Mark Twain




Christo pher Rice






Interesting Quotes

Jokes






__________________________________________



The clerk replied



HUMOR AND QUOTES
































BANKING







bull

bull







Intangibility




(ii) Inseparability






(v) Retaining






























bull

bull

bull

bull

bull

bull

bull

bull

bull

bull




BUSINESS

POLICY

Financialmanagement



variables



PersonnelManagement

Marketingmanagement

Bank Objectives

Market segmentation






service





them













By Zulfiqar Haider


BANKING










































Venture Capital



Growth Capital



Leveraged Buyout









ldquoThese are

long term


and cannot

be easily

disposed-offrdquo


















(i)

(ii)

(iii)





BANKING






of XYZ amp Co Ltd















Banking


Contribution of















By Aysha Noor


ISLAMIC BANKIG









Development

















society

























BOOK REVIEW








try overall

















WHAT IS THE CBPSB



INDEPENDENTADVISORY

PANEL













wwwcbpsborg

















profession







Mark Twain




Christo pher Rice






Interesting Quotes

Jokes






__________________________________________



The clerk replied



HUMOR AND QUOTES











bull

bull







Intangibility




(ii) Inseparability






(v) Retaining






























bull

bull

bull

bull

bull

bull

bull

bull

bull

bull




BUSINESS

POLICY

Financialmanagement



variables



PersonnelManagement

Marketingmanagement

Bank Objectives

Market segmentation






service





them













By Zulfiqar Haider


BANKING










































Venture Capital



Growth Capital



Leveraged Buyout









ldquoThese are

long term


and cannot

be easily

disposed-offrdquo


















(i)

(ii)

(iii)





BANKING






of XYZ amp Co Ltd















Banking


Contribution of















By Aysha Noor


ISLAMIC BANKIG









Development

















society

























BOOK REVIEW








try overall

















WHAT IS THE CBPSB



INDEPENDENTADVISORY

PANEL













wwwcbpsborg

















profession







Mark Twain




Christo pher Rice






Interesting Quotes

Jokes






__________________________________________



The clerk replied



HUMOR AND QUOTES











bull

bull

bull

bull

bull

bull

bull

bull

bull

bull




BUSINESS

POLICY

Financialmanagement



variables



PersonnelManagement

Marketingmanagement

Bank Objectives

Market segmentation






service





them













By Zulfiqar Haider


BANKING










































Venture Capital



Growth Capital



Leveraged Buyout









ldquoThese are

long term


and cannot

be easily

disposed-offrdquo


















(i)

(ii)

(iii)





BANKING






of XYZ amp Co Ltd















Banking


Contribution of















By Aysha Noor


ISLAMIC BANKIG









Development

















society

























BOOK REVIEW








try overall

















WHAT IS THE CBPSB



INDEPENDENTADVISORY

PANEL













wwwcbpsborg

















profession







Mark Twain




Christo pher Rice






Interesting Quotes

Jokes






__________________________________________



The clerk replied



HUMOR AND QUOTES













By Zulfiqar Haider


BANKING










































Venture Capital



Growth Capital



Leveraged Buyout









ldquoThese are

long term


and cannot

be easily

disposed-offrdquo


















(i)

(ii)

(iii)





BANKING






of XYZ amp Co Ltd















Banking


Contribution of















By Aysha Noor


ISLAMIC BANKIG









Development

















society

























BOOK REVIEW








try overall

















WHAT IS THE CBPSB



INDEPENDENTADVISORY

PANEL













wwwcbpsborg

















profession







Mark Twain




Christo pher Rice






Interesting Quotes

Jokes






__________________________________________



The clerk replied



HUMOR AND QUOTES











By Zulfiqar Haider


BANKING










































Venture Capital



Growth Capital



Leveraged Buyout









ldquoThese are

long term


and cannot

be easily

disposed-offrdquo


















(i)

(ii)

(iii)





BANKING






of XYZ amp Co Ltd















Banking


Contribution of















By Aysha Noor


ISLAMIC BANKIG









Development

















society

























BOOK REVIEW








try overall

















WHAT IS THE CBPSB



INDEPENDENTADVISORY

PANEL













wwwcbpsborg

















profession







Mark Twain




Christo pher Rice






Interesting Quotes

Jokes






__________________________________________



The clerk replied



HUMOR AND QUOTES














































Venture Capital



Growth Capital



Leveraged Buyout









ldquoThese are

long term


and cannot

be easily

disposed-offrdquo


















(i)

(ii)

(iii)





BANKING






of XYZ amp Co Ltd















Banking


Contribution of















By Aysha Noor


ISLAMIC BANKIG









Development

















society

























BOOK REVIEW








try overall

















WHAT IS THE CBPSB



INDEPENDENTADVISORY

PANEL













wwwcbpsborg

















profession







Mark Twain




Christo pher Rice






Interesting Quotes

Jokes






__________________________________________



The clerk replied



HUMOR AND QUOTES














Venture Capital



Growth Capital



Leveraged Buyout









ldquoThese are

long term


and cannot

be easily

disposed-offrdquo


















(i)

(ii)

(iii)





BANKING






of XYZ amp Co Ltd















Banking


Contribution of















By Aysha Noor


ISLAMIC BANKIG









Development

















society

























BOOK REVIEW








try overall

















WHAT IS THE CBPSB



INDEPENDENTADVISORY

PANEL













wwwcbpsborg

















profession







Mark Twain




Christo pher Rice






Interesting Quotes

Jokes






__________________________________________



The clerk replied



HUMOR AND QUOTES












Venture Capital



Growth Capital



Leveraged Buyout









ldquoThese are

long term


and cannot

be easily

disposed-offrdquo


















(i)

(ii)

(iii)





BANKING






of XYZ amp Co Ltd















Banking


Contribution of















By Aysha Noor


ISLAMIC BANKIG









Development

















society

























BOOK REVIEW








try overall

















WHAT IS THE CBPSB



INDEPENDENTADVISORY

PANEL













wwwcbpsborg

















profession







Mark Twain




Christo pher Rice






Interesting Quotes

Jokes






__________________________________________



The clerk replied



HUMOR AND QUOTES





















(i)

(ii)

(iii)





BANKING






of XYZ amp Co Ltd















Banking


Contribution of















By Aysha Noor


ISLAMIC BANKIG









Development

















society

























BOOK REVIEW








try overall

















WHAT IS THE CBPSB



INDEPENDENTADVISORY

PANEL













wwwcbpsborg

















profession







Mark Twain




Christo pher Rice






Interesting Quotes

Jokes






__________________________________________



The clerk replied



HUMOR AND QUOTES










of XYZ amp Co Ltd















Banking


Contribution of















By Aysha Noor


ISLAMIC BANKIG









Development

















society

























BOOK REVIEW








try overall

















WHAT IS THE CBPSB



INDEPENDENTADVISORY

PANEL













wwwcbpsborg

















profession







Mark Twain




Christo pher Rice






Interesting Quotes

Jokes






__________________________________________



The clerk replied



HUMOR AND QUOTES







Banking


Contribution of















By Aysha Noor


ISLAMIC BANKIG









Development

















society

























BOOK REVIEW








try overall

















WHAT IS THE CBPSB



INDEPENDENTADVISORY

PANEL













wwwcbpsborg

















profession







Mark Twain




Christo pher Rice






Interesting Quotes

Jokes






__________________________________________



The clerk replied



HUMOR AND QUOTES













Development

















society

























BOOK REVIEW








try overall

















WHAT IS THE CBPSB



INDEPENDENTADVISORY

PANEL













wwwcbpsborg

















profession







Mark Twain




Christo pher Rice






Interesting Quotes

Jokes






__________________________________________



The clerk replied



HUMOR AND QUOTES
























BOOK REVIEW








try overall

















WHAT IS THE CBPSB



INDEPENDENTADVISORY

PANEL













wwwcbpsborg

















profession







Mark Twain




Christo pher Rice






Interesting Quotes

Jokes






__________________________________________



The clerk replied



HUMOR AND QUOTES






















BOOK REVIEW








try overall

















WHAT IS THE CBPSB



INDEPENDENTADVISORY

PANEL













wwwcbpsborg

















profession







Mark Twain




Christo pher Rice






Interesting Quotes

Jokes






__________________________________________



The clerk replied



HUMOR AND QUOTES




















BOOK REVIEW








try overall

















WHAT IS THE CBPSB



INDEPENDENTADVISORY

PANEL













wwwcbpsborg

















profession







Mark Twain




Christo pher Rice






Interesting Quotes

Jokes






__________________________________________



The clerk replied



HUMOR AND QUOTES












try overall

















WHAT IS THE CBPSB



INDEPENDENTADVISORY

PANEL













wwwcbpsborg

















profession







Mark Twain




Christo pher Rice






Interesting Quotes

Jokes






__________________________________________



The clerk replied



HUMOR AND QUOTES










Mark Twain




Christo pher Rice






Interesting Quotes

Jokes






__________________________________________



The clerk replied



HUMOR AND QUOTES











Documents

Journal of Bankers