What were the main reforms in the financial sector?
Types of Financial Sector Reforms:
- Reduction in Statutory Liquidity Ratio (SLR) and Cash Reserve Ratio (CRR):
- End of Administered Interest Rate Regime:
- Prudential Norms: High Capital Adequacy Ratio:
- Competitive Financial System:
- Non-Performing Assets (NPA) and Income Recognition Norm:
What are the main objectives of financial sector reforms of 1991?
The main objective of banking sector reforms was to promote a diversified, efficient and competitive financial system with the ultimate goal of improving the allocative efficiency of resources through operational flexibility, improved financial viability and institutional strengthening.
What was wrong with the Pakistani banking system that such massive reforms had to be undertaken?
What was wrong with the Pakistani banking system that such massive reforms had to be undertaken? economy was not given due attention by the banking sector. There were legitimate reasons for such an errant behaviour.
What were the impacts of nationalization of banks on the financial sector in Pakistan?
In accordance with the Banks Nationalization Act, all deposits in the nationalized commercial banks were fully insured by the government. But despite this assurance, the high and increasing rate of inflation resulted in reduced deposits by 20 per cent and in real terms deposits were reduced by about 23 per cent.
What are the financial sector reforms under Liberalisation?
FINANCIAL SECTOR REFORMS: Liberalisation implied a substantial shift in the role of the RBI from ‘a regulator’ to ‘a facilitator’ of the financial sector. Free play of the market forces has led to the emergence of private bankers- both domestic as well as international in the Indian banking Industry.
What is Narasimham Committee report?
The Narasimham-II Committee was tasked with the progress review of the implementation of the banking reforms since 1992 with the aim of further strengthening the financial institutions of India. It focussed on issues like size of banks and capital adequacy ratio among other things.
What financial system of Pakistan constitutes of?
Financial sector of Pakistan constitute banks, Development Finance Institutions (DFIs), Microfinance Banks (MFBs), Non-banking Finance Companies (NBFCs), insurance companies, Modarabas and other financial intermediaries.
What is the role of financial market in Pakistan?
The key financial markets of Pakistan are bond market, money market and equity market. Whenever the interest rate in an economy is high, the demand for Treasury bills fall and consequently its prices fall as well. This is why, the Treasury bill rates at the end of 2001 were on its way towards decline.
What is nationalization policy who implemented this policy in Pakistan?
The Nationalisation process in Pakistan (or historically simply regarded as the “Nationalisation in Pakistan”) was a policy measure programme in the economic history of Pakistan, first introduced, promulgated and implemented by Prime Minister Zulfikar Ali Bhutto and the Pakistan Peoples Party to lay the foundation of …
What is financial inclusion strategy?
For the purpose of the Strategy, “financial inclusion is achieved when adult Nigerians have. easy access to a broad range of formal financial services that meet their needs at an. affordable cost.” The services include, but are not limited to, payments, savings, loans, insurance, and pension products.