SME Banks

SMEs have assumed great importance in the developing counties in recent years. Though they contribute very greatly to trade, commerce and industry yet they have difficulties it raising capital for them. Keeping all these issue in view SME banks have been established in Pakistan to cater to the financial needs of these enterprises. The SME banks are providing basically short term working capital to the small and medium enterprises in Pakistan.

What is Eximp Bank?

These are the banks which provide finance for promotion of imports and exports to trade,commerce and industry. These bank are contributing greatly towards the expansion of international trade of developed countries where they function mainly in private sector.

What is Cooperative Bank?

These were the banks established and registered as a cooperative venture to provide banking facilities to the members of cooperatives. In Pakistan the Federal Bank of Cooperatives was such a bank but now it has been merged with Zarai Taraqiati Bank.

What is Development Bank?

These banks have been established to provide long term development finance to the trade, commerce and industry. In Pakistan they are generally government owned banks, established under a specially promulgated law.
Zarai Taraqiati  Bank of Pakistan and Industrial Development Bank of Pakistan are very well-known development banks.

What is Investment Bank?

The investment banks assist business houses and the governmental bodies to rise money through the sale of stocks and bonds for usually long term purposes. These banks perform the usual functions of rising deposits of idle money from the public and finance the business houses and other bodies.

What is Consumer Bank?

These banks provide finance for purchasing consumption goods for the use of the borrowers. Consumer finance companies,sales finance companies and credit unions are some of the popular forms of consumer Banks.

Treasury Input

The inputs of commercial banks are deposits from customers. These are the sources of funds (liabilities), which are payable with or without profit on demand or at a specified date. Hence are called the demand and time liabilities of the bank. Out of these total demand and time liabilities, specific percentage amounts are kept towards maintenance of CRR(currently 5%) and SLR(currently 15%) requirements. The CRR is the cash reserve maintained with Central Bank at 0% rate of profit on daily basis. Similarly SLR is the liquid assets to be maintained in the form of liquid cash and government securities namely Federal Investment Bonds, Pakistan Investment Bonds and Market Treasury Bills. The rest of the funds i.e. remaining 80% may be used for lending and other investment purpose.