“A third bank has also sought permission for evaluation of KASB Bank and two or three more financial institutions are in the process of negotiations in this regard,” he said while talking to traders at the Federation of Pakistan Chambers of Commerce and Industry (FPCCI).
Wathra claimed credit for the decline in inflation, saying the price fall was the result of central bank’s monetary policy stance over the last about one and a half years.
However, he reminded the businessmen that interest rate could not be brought down only on the basis of a drop in international crude oil prices and other factors had also to be taken into account. These included investment demand and supply, balance of payments position, trade projections and debt repayments.
“The central bank has cut the key policy rate in the last monetary policy and a further reduction could be considered in next policy reviews,” he said. “The monetary policy decision is taken by the independent board of the central bank on the recommendation of the Monetary Policy Advisory Committee, in which the private sector has its representatives.”
He acknowledged that investments by banks in government’s treasury bills and bonds stood higher than the benchmark of 1% of their assets. Still, banks have adequate funds available for the private sector and they will not deny credit requests of businessmen by saying they have parked money in government papers.
Talking about the incentives given to exporters, Wathra said the central bank had cut the export refinance rate and also offered rebate to the leading performers. For the rebate facility, Rs400 million has been set aside which is separate from the rebate given by the government.
Apart from this, the exporters are also provided long-term financing facility by the government.
The central bank has also reduced the refinance rate for small and medium-sized enterprises, which are provided 2.5% rebate by the government.
Published in The Express Tribune, December 23rd, 2014.
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Mr. Governor ! You have taken the worst decision of its kind by stopping the hard earning of innocent depositors without having any fault on their part,instead to punish the KASB management and Bank staff, who are the genuine culprits, you have choosen to kill the DEPOSITORS.
Dear Concern, the situation termed worst day by day and should be normalized as soon as possible rather six.months time which is too much fir depositors especially poors. Govt. Should merge KASB with NBP on immediate basis or speedy process and KASB management should not be given any options to let the bank merge with any other bank as they do not deserve rather capable to do so.
Mr Governor, Well I don't understand if the bank authorities have committed some illegal activity , how could you decide to punish the depositors. You have taken the worst decision in banking history which is not only unfair & unethical but inhuman. You have snatched the money of the depositors from them in the same way as gangsters do that on street. Don't you realize how many families are suffering from your wrong decision and facing difficult situation. People have lost faith in banking system and especially SBP who rather than providing relief have taken away their money from them. If bankers has violated the rules, why don't you punish them? But it is easy to penalize public rather than those big tycoons of the society. We would request you to kindly review your decision and release the hard earning money of people which they trusted you with.
Dear SBP,
Issue should be resolved on priority basis and not in six months period. My suggestion is to merge the bank with NBP for its Islamic Banking Promotion which will also highlight Govt. interest to promote Islamic Banking in the country. Similalrly all the bank staff of KASB should be given Job in NBP or given good option in shape of Job or incentivesas they are in pain as well.
MR. GOVERNOR, we request you to resolve the KASB issue as soon as possible... we are in panic situation...please ... you have taken a worse decision, unethical and inhuman decision. ... many families are facing so difficult situation please.