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LAWS RELATING TO FINANCIAL SERVICES
Objective The objective of this course is to acquaint the candidates, who sit this examination, with the legal and regulatory framework of banking and non-banking financial institutions, and help them acquire functional knowledge and understanding of the prevalent laws, traditions and practices in this sector.
Candidates are expected not only to know as to how a particular job is done but as to why that job is processed in that particular manner. Precisely, this course offers answers to the 'hows' and 'whys' so as to develop the unimaginative routine functionaries into knowledgeable innovative professionals.
Course Outline Chapter â I Origin and Evolution of Banking
1.1 Origin and Evolution Banque(French) & banca(Italian) means bench or money changerâs table
1.2 Modern Banking Modern banking started in Britain by Lombardy merchants in Lombard street London in England in 14th Century, they began the issue & deposit banking & some issued check books
1.3 Banking in Pakistan By 30th Jun, 1948 the number of offices of scheduled banks in Pakistan declined sharply from 487 to only 195. Out of 99 banks listed in the schedule of Reserve bank of India, only Two banks Australasia Bank Ltd, Lahore & Habib bank Ltd. (from Bombay to), Karachi had their Head offices in Pakistan.
The SBP Order, 1948 directed that SBP shall be Central Bank of Pakistan from 1st Jul, 1948. Initially HBL played important role in banking sector in Pakistan. The formation of National Bank of Pakistan in 1949 made a major contribution in expansion of banking industry in Pakistan. In 1974 all banks of Pakistani origin were Nationalized. Govt.of Pakistan initiated policy of disinvestment of Nationalized banks from 1st Jan, 1990 and permission for establishment of New banks in Private sector in 1991. Privatization of HBL, 51% share divested to Agha khan Fund for Economic Development in Feb. 2004 & Allied bank of Pakistan Ltd. to Ibrahim Leasing Ltd/Ibrahim group & United Bank Ltd.to UK group & National bank of Pakistan 23.2% shares off loaded. Mergers & Acquisitions of Mashreq bank with Crescent Investment Bank & National Developing Leasing Company with International Finance and Investment and Commerce Bank & KASB Leasing with KASB Bank & Bank of Ceylon with Dawood bank & Credit Agricole with NDKC-IFIC(now NIB) etc.
Q.2 Please write the alphabet of selected answer in the column. (10) (Summer-2006)
x. Under the various stopgap arrangements in 1947 the role of the Central Bank of Pakistan was given to
A) Bank of England
B) Reserve Bank of India
C) Central Bank of Iran
D) None of the above
Q.3 State True or False give brief reason for your selection at the space provided below the question. (20) (Summer-2006)
xviii. The Muslim Commercial Bank was incorporated in Calcutta in July 1947 and moved its Head Office to Dhaka in 1948.
1.4 The definition of Banking
1.4.1 Literary definition of bank an establishment for the custody, loan, exchange or issue is money, for the extension of credit and for facilitating the transmission of funds 1.4.2 Statutory definition Bill of Exchange Act, 1882(Section 2) a body of persons whether incorporated or not who carry on the business of banking is banker
1.4.3 Definition by Judiciary
1.4.4 United Kingdom & 1.4.5 United States of America
1.4.6 India Banking Regulations Act, 1949 (Section 5b) Banking means the accepting for the purpose of lending to investments, of deposits of money from public, repayable on demand or otherwise and withdraw-able by cheque, draft, and order or otherwise
1.4.7 Pakistan Banking Companies Ordinance, 1962(Section 5b) defines banking as Accepting, for the purpose of lending or investment of deposits of money from the public, repayable on demand or otherwise and withdraw-able by cheque, draft, order or otherwise
Term Bank/Banking necessarily includes I. accepting of deposits of money ii. Allowing withdrawal & iii. Making commercial loans
The acceptance of deposits from customers and then lending to customers hence assume the core business i.e. bread and butter of a banking institution.
LAWS RELATING TO FINANCIAL SERVICES
Objective The objective of this course is to acquaint the candidates, who sit this examination, with the legal and regulatory framework of banking and non-banking financial institutions, and help them acquire functional knowledge and understanding of the prevalent laws, traditions and practices in this sector.
Candidates are expected not only to know as to how a particular job is done but as to why that job is processed in that particular manner. Precisely, this course offers answers to the 'hows' and 'whys' so as to develop the unimaginative routine functionaries into knowledgeable innovative professionals.
Course Outline Chapter â I Origin and Evolution of Banking
1.1 Origin and Evolution Banque(French) & banca(Italian) means bench or money changerâs table
1.2 Modern Banking Modern banking started in Britain by Lombardy merchants in Lombard street London in England in 14th Century, they began the issue & deposit banking & some issued check books
1.3 Banking in Pakistan By 30th Jun, 1948 the number of offices of scheduled banks in Pakistan declined sharply from 487 to only 195. Out of 99 banks listed in the schedule of Reserve bank of India, only Two banks Australasia Bank Ltd, Lahore & Habib bank Ltd. (from Bombay to), Karachi had their Head offices in Pakistan.
The SBP Order, 1948 directed that SBP shall be Central Bank of Pakistan from 1st Jul, 1948. Initially HBL played important role in banking sector in Pakistan. The formation of National Bank of Pakistan in 1949 made a major contribution in expansion of banking industry in Pakistan. In 1974 all banks of Pakistani origin were Nationalized. Govt.of Pakistan initiated policy of disinvestment of Nationalized banks from 1st Jan, 1990 and permission for establishment of New banks in Private sector in 1991. Privatization of HBL, 51% share divested to Agha khan Fund for Economic Development in Feb. 2004 & Allied bank of Pakistan Ltd. to Ibrahim Leasing Ltd/Ibrahim group & United Bank Ltd.to UK group & National bank of Pakistan 23.2% shares off loaded. Mergers & Acquisitions of Mashreq bank with Crescent Investment Bank & National Developing Leasing Company with International Finance and Investment and Commerce Bank & KASB Leasing with KASB Bank & Bank of Ceylon with Dawood bank & Credit Agricole with NDKC-IFIC(now NIB) etc.
Q.2 Please write the alphabet of selected answer in the column. (10) (Summer-2006)
x. Under the various stopgap arrangements in 1947 the role of the Central Bank of Pakistan was given to
A) Bank of England
B) Reserve Bank of India
C) Central Bank of Iran
D) None of the above
Q.3 State True or False give brief reason for your selection at the space provided below the question. (20) (Summer-2006)
xviii. The Muslim Commercial Bank was incorporated in Calcutta in July 1947 and moved its Head Office to Dhaka in 1948.
1.4 The definition of Banking
1.4.1 Literary definition of bank an establishment for the custody, loan, exchange or issue is money, for the extension of credit and for facilitating the transmission of funds 1.4.2 Statutory definition Bill of Exchange Act, 1882(Section 2) a body of persons whether incorporated or not who carry on the business of banking is banker
1.4.3 Definition by Judiciary
1.4.4 United Kingdom & 1.4.5 United States of America
1.4.6 India Banking Regulations Act, 1949 (Section 5b) Banking means the accepting for the purpose of lending to investments, of deposits of money from public, repayable on demand or otherwise and withdraw-able by cheque, draft, and order or otherwise
1.4.7 Pakistan Banking Companies Ordinance, 1962(Section 5b) defines banking as Accepting, for the purpose of lending or investment of deposits of money from the public, repayable on demand or otherwise and withdraw-able by cheque, draft, order or otherwise
Term Bank/Banking necessarily includes I. accepting of deposits of money ii. Allowing withdrawal & iii. Making commercial loans
The acceptance of deposits from customers and then lending to customers hence assume the core business i.e. bread and butter of a banking institution.
