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									                        Monetary Evaluation

    Targeting main sector of Pakistan i.e. Agriculture sector by offering “Kissan
    Making financial management easy through differentiated products
      Operations through strong network of branches, backed by advanced
      computerized and control system
    Strengthening of capital base to meet requirements of State Bank
    BOP is an “equal opportunity provider” so no hiring on gender basis
    Hiring of educated people & compensating them accordingly
    Promotion from within the company
    Decentralized decision making


The bankruptcy of Lehman Brothers remains the largest bankruptcy filing in U.S.
history with Lehman holding over $600 billion in assets. It was occurred in
September 2008.

Effect of Lehman Brother Insolvency on Bank of Punjab

    Lehman Brother insolvency was occurred in 2008 at that time the bank of
      Punjab really suffering form the Hamesh Khan Fraud.
    Due to all these crisis the interest percentage increases by 2%.(13% to 15% ).

The Dubai Debt Crisis 2009 has been called by economists a consequence of real
estate bubble burst when on November 26, 2009 vaDubai proposed to delay
repayment of its debt which includes delay in the payment of $ 59 Billion debt on
Dubai World, the investment vehicle for the emirates for 6 months.
    Dubai's Economy:
   Dubai has one of the most unique and unusual economies in the world. Dubai has
    numerous free zones including Jebel Ali free zone, Dubai Maritime City, Dubai
    Internet City, and Dubai Media City.
   Contrary to the general assumption that Dubai's economy is totally driven by oil
    and gas,It is a fact that oil sector only comprises less than 6% of the economy of
   In fact, Dubai's portion of natural gas revenues in the United Arab Emirates is only
    about 2%. Dubai's oil production is estimated to be about 240,000 barrels per day.
   It is true that Dubai's economy was built on the back of Oil Money but Dubai's oil
    reserves have diminished significantly and are expected to be exhausted in 20
   The other largest contributing sectors of Dubai economy areReal estate and
    construction (22.6%), trade (16%), (15%) and financial services (11%) (all are 2007

    The Burst of the Bubble:
1. Dubai, ruled by Sheikh Mohammed Bin Rashid Al Maktoum, had borrowed $80
    billion in a four-year construction boom to transform the economy into a regional
    tourism and financial hub.
2. This emirate in the due course of time suffered the world’s steepest property
    slump in the global recession, with home prices dropping 50 percent from their
    2008 peak.
3. Dubai world with $59 billion of liabilities, sought a “standstill” agreement from
    creditors. Its debt includes $3.52 billion of bonds due Dec. 14 from property unit
    Nakheel PJSC.
4. Some analysts say that : The core reason for the Dubai Financial mess up is that
    Sheikh Mohammed's decision to invest all his wealth as well as Dubai govt fortunes
    in Real estate markets in United states through a foreign investment arm of
    Emaar,which claimed to be the second largest property developer in US ,which
    ultimately went bankrupt due to recession.
5. Subsequently, Dubai shifted into crisis mode with its dangerous building boom
   stalled, its lending bonanza vanished and government pondered wider steps to
   rescue banks.

   Effect of Political Instability
   Political instability effect the Bank of Punjab badly. In 2002 President Gen.
   Mushraff elected the Hemesh Khan as the president of Bank of Punjab. He
   committed the fraud of Rs 10 billion given as a loan for personal gain to Sheikh
   Muhammad Afzal without fulfilling the legal requirements. He also committed the
   crim of opening 23 fake accounts and given the loans of Rs 4.5 billions.

   Currency devaluation
   Devaluation is a reduction in the value of a currency with respect to other
   monetary units. In common modern usage, it specifically implies an official
   lowering of the value of a country's currency within a fixed exchange rate system,
   by which the monetary authority formally sets a new fixed rate with respect to a
   foreign reference currency. In contrast, (currency) depreciation is most often used
   for the unofficial decrease in the exchange rate in a floating exchange rate
   system. The opposite of devaluation is called revaluation.

   Effect of Currency devaluation
   Due to the devaluation of the currency the infalation increases in the country due
   to which the investment and the saving in the Bank of Punjab decreases which
   effect a lot the BOP.

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