Thursday August 18, 2022
اردو
Dialogue Pakistan Dialogue Pakistan
Dialogue Pakistan Dialogue Pakistan
  • Citizen Journalism
  • Pakistan
  • World
  • Sports
  • Entertainment
  • Videos
    • Feature Videos
    • In House Videos
    • Mobile Footage
    • Documentaries
  • More
    • Features
    • Health
    • Sci-Tech
    • Business
    • In Pictures
    • Facebook
News

Moody says Pakistan’s banking system has ‘stable outlook’

by Web Desk February 6, 2020

AA

 Moody says Pakistan’s banking system has ‘stable outlook’

In its latest report, the US-based bond rating firm, Moody Investor Services, has offered stable prospects for Pakistan’s banking system over the next 12-18 months, backed by strong financing and liquidity and close ties to the sovereign.

Moody anticipates in his study that the government will remain willing, in case of need, to support at least the critically significant banks, but its capacity to do so is constrained by fiscal challenges reflected by its B3 ranking.

“The sovereign credit profile has improved in recent months, benefiting the banks through their high exposure to government securities, which account for around 40pc of their assets,” says Constantinos Kypreos, a Moody’s Senior Vice President.

As per Moody, ongoing infrastructure projects and improvements in electricity generation and domestic security will also support economic development in Pakistan in terms of operating environment. Moreover, terms of trade gains and the depreciation of rupees are likely to elevate private investment from low levels.

“Operating conditions for Pakistan banks, although gradually improving, remain difficult amid tight monetary conditions – with the policy rate at 13.25pc – and large government borrowing needs crowding out funding for the private sector,” adds Kypreos.

The agency added that while economic growth will remain sluggish, the exchange rate has stabilized since June 2019, and markets are expecting lower policy rates from the State Bank of Pakistan over the coming years.

Read More: Moody says Pakistan’s banking system has ‘stable outlook’

Stable deposits from customers and high liquidity still remain key strengths, providing ample low-cost financing for banks. Capital rates should remain relatively stable, but Moody’s takes these modest compared to peers into consideration. Profits will slightly increase but remain below past levels.

Post Views: 133

Share This:

Tags: banking system
Previous post
Next post




Polls

Will PTI get majority in coming By-elections in 9 National Assembly Constituencies?

View Results

Loading ... Loading ...
Most Recent
News

Railway Minister takes notice of ‘Dance party’

August 18, 2022
News

Imran Khan’s nomination papers for NA-108 Faisalabad

August 18, 2022
Citizen Journalism

Karachi weather update: What’s the latest forecast?

August 18, 2022
News

Honest Faisalabad airport staff return bag carrying

August 18, 2022
August 2022
M T W T F S S
1234567
891011121314
15161718192021
22232425262728
293031  
« Jul    

Dialogue Pakistan

Citizen Journalism is the collection, dissemination and analysis of news by the people for the people especially by the means of internet. Dialogue Pakistan is the country’s first citizen journalism portal to provide Pakistanis an opportunity to get themselves heard aiming to encourage citizen journalism inculcated with ethical values.

Quick Links

اردو
About Us
Advertise
Careers
Contact

Category

Citizen Journalism
Pakistan
World
Sports
Entertainment
Features

Download our APP

Social Platforms

  • Facebook
  • Twitter
  • LinkedIn
  • Instagram
  • Youtube
Copyright 2022.Dialogue Pakistan. All Rights Reserved.