Conventional Banks
The concept of the conventional bank was emerged from Italy. Then this concept grew after the commercial revolution of the High Middle Ages from 1000 to1350. By the early modern period however banking spread throughout Europe and became complex and increasingly involved in credit transactions. These are the banks which are operating on the [...]
“Money creation is the way by which money supply of any country increases. State bank introduce new notes in the society by purchasing financial assets or by lending to the financial institutions. The state bank monitor the amount of money and control the supply and demand of the money in the economy. State bank also [...]
By doing forward contracts a company can protect itself against adverse exchange rate fluctuations. A forward contract permits a company to buy or sell currency at a specific rate at a specific time. It can be understood from the following example.
A Pakistani importer owes 1 million euros to a French exporter 60 days from now, [...]
Pakistan is agricultural country having best seasons for different crops. It is a source of employment and means of livelihood to about more than 60% population also provide the raw materials to the industrial sector. For the sustainability of Pakistan economy, the need for agricultural financing came up as a result of the fact that [...]
Currency devaluation is formally known as depreciation of local currency against gold or other countries currencies. Currency devaluation is normally measured as a way to muddle through the Balance of Payment. Analysts usually hold up the point of view that currency devaluation could be prolific for the local economy, as devalued currency will intensify the [...]
You can’t get far in the stock market without understanding earnings. Everybody from CEOs to research analysts is infatuated with this often-quoted number. But what exactly do earnings represent? Why do they attract so much attention? We’ll answer these questions and more in this primer on earnings.
What Are Earnings?
A company’s earnings are, quite simply, its [...]
The global financial crises occur due to negligence or mistakes done by financial institutions or by western or Conventional banking. After the global financial crises more attentions is given towards Islamic banking and due to growth in Islamic banking I have decided to differentiate between Islamic and conventional banking.
Now there are very less number of [...]
“Commercial banks are the major source to provide banking services to individuals, small businesses and large organizations.” Commercial banks act as intermediaries between those who want to transfer money and those who want to receive money. There are numerous other functions of commercial banks such as financial advisors, provide safety of valuable assets, performing agency [...]
A bank is a place where they lend you an shadow in fair weather and ask for it back when it begins to rain.
Robert Frost
Banking sector is always a very important sector for every economy. Same is the case with Pakistan. Banks perform various duties which are dissimilar in nature. The primary and most important [...]
Before going into detail I want to give you a brief introduction about Islamic Finance, Islamic Banking and Islamic financial System. So first of all, what we think about the Islamic finance? Basically Islamic finance is also a mode of finance but in Islamic finance the financial transactions based according to the Islam and Shariah.
Second, [...]
