Business
SBP governor urges banks to prioritise innovation, inclusivity
字号+ Author:Smart News Source:Travel 2025-01-12 13:37:52 I want to comment(0)
KARACHI: State Bank Governor Jameel Ahmad on Friday emphasised the need for the banking industry to embrace technology and foster innovation to drive economic growth. He made these remarks at the launch of the report Banking on Our Banks: Aligning Growth with Development at an event held in Karachi. Ahmad stressed that the country’s banking sector is well-positioned in terms of solvency, asset quality and profitability to contribute to economic development. “While remaining focused on governance and risk management, we can enhance the capacity and resilience of our banking sector to serve all segments of the economy,” he said. Zafar Masud, chairman of the Pakistan Banks Association (PBA), said it was important to recognise that Pakistan’s banks operate in a challenging environment, with 52 per cent of the undocumented economy and many sectors actively avoiding the tax net. “Despite these challenges, the banking sector continues to contribute generously to the national exchequer and fiscal deficit, with a willingness to do even more through income-based taxes than the taxes on balance sheet like the ADR (Advance-to-Deposit Ratio),” he said. Maroof A. Syed, president and CEO of the Centre for Economic Research in Pakistan (CERP), said, “The truth is that changing rules doesn’t change behaviour, incentives do. With the right data and solutions, we can build a unified banking ecosystem ready to fuel Pakistan’s economic recovery.” The event discussions highlighted regulatory challenges, the high costs associated with digitalisation and the resulting overreliance on unprofitable sectors. However, with well-implemented and strategic reforms, these issues can be addressed, reducing frictional costs and enhancing banks’ long-term competitiveness, according to a CERP analysis. Jawwad Farid, CEO of Alchemy Technologies and Professor of Practice at IBA, noted, “We need market-driven incentives, robust regulatory frameworks, forward-looking boards and a sandbox approach to experimentation. Otherwise, banks will continue to prioritise comfort lending over bold decisions necessary for economic transformation.” A new analysis by CERP and Alchemy Technologies said that innovation, financial inclusion, SME lending and forward-thinking banking regulations are key to boosting the efficiency of Pakistan’s banks. While the sector has shown great improvements, it is important to move beyond measuring profitability and growth as the only relevant performance indicators for evaluating the competitiveness of our banks, the analysis said.
1.This site adheres to industry standards, and any reposted articles will clearly indicate the author and source;
Related Articles
-
Angelina Jolie stays true to 'UN' title as LA wildfires rage on
2025-01-12 13:27
-
سائم ایوب کو آئی سی سی مینز ایمرجنگ کرکٹر آف دی ایئر 2024 کے لیے نامزد کیا گیا
2025-01-12 12:46
-
پاکستان بمقابلہ جنوبی افریقہ: گرین شرٹس کے تین کھلاڑیوں کے آؤٹ ہونے کے بعد پروٹیز نے کمان سنبھال لی
2025-01-12 12:14
-
پہلے ٹیسٹ میچ میں جنوبی افریقہ نے پاکستان کو دو وکٹوں سے شکست دی۔
2025-01-12 11:22
User Reviews
Recommended Reads
Hot Information
- China logs hottest year on record in 2024: weather agency
- پاکستان کے چیمپئنز ٹرافی اسکواڈ میں کون شامل ہونے کی توقع ہے؟
- کرِسٹینو رونالڈو نے وینیسیئس جونیئر کو نظر انداز کرنے پر بالون ڈی اور کی مذمت کی
- سڈنی سے ہوبارٹ یٹ رییس کے دوران سخت موسم کی وجہ سے دو افراد ہلاک ہوگئے۔
- S Korean court orders arrest of suspended President Yoon
- بابر اعظم آئی سی سی مینز ٹی ٹوئنٹی کرکٹر آف دی ایئر ایوارڈ کے لیے نامزد
- پاکستانی بیٹنگ جوڑی، سائم ایوب اور آغا سلمان، آئی سی سی ون ڈے رینکنگ میں اوپر چڑھ گئے۔
- بابر اعظم آئی سی سی مینز ٹی ٹوئنٹی کرکٹر آف دی ایئر ایوارڈ کے لیے نامزد
- Wapda edge Navy in national netball
Abont US
Follow our WhatasApp account to stay updated with the latest exciting content