No Result
View All Result
  • Business
  • National
  • World
  • Sports
  • Entertainment
    • ZABTHEATRE’23
  • Tech
  • Stories
  • Education
  • YourCut
  • Business
  • National
  • World
  • Sports
  • Entertainment
    • ZABTHEATRE’23
  • Tech
  • Stories
  • Education
  • YourCut
No Result
View All Result
No Result
View All Result

IMF wants quick actions from Pakistan to recapitalise four banks

Zain Aijaz by Zain Aijaz
July 21, 2023
in Business, Featured
Reading Time: 1 min read
IMF wants quick actions to recapitalise four banks

Karachi: In its Staff Report ( prepared for July 12 Executive Board meeting to approve the $3 billion Stand-By agreement) the International Monetary Fund (IMF) said that even though the banking industry appeared stable, the impact of economic downturn is yet to materialise. IMF further said that a delay in resolving four undercapitalised banks would hamper the stability of the financial sector of Pakistan.

Though the global money lender has not mentioned names in their report, economic analysts believe that undercapitalised banks include Summit Bank Ltd, SME Bank Ltd, and Silkbank Ltd.

IMF said that swift action has to be taken to address undercapitalised financial organisations to maintain financial stability. It added that recapitalise process should be accelerated by the State Bank of Pakistan (SBP).

SBP has told IMF that if the undercapitalised banks fail to recapitalise, then they would enter ‘resolution’. In banking, resolution refers to restructuring in a situation where regulators claim no prospect of recovery.

Silkbank has been looking for investors as its losses amount to Rs20.2 billion by 2020 (the last time bank issued financial accounts). Silkbank’s capital was Rs3.16 billion, and the prescribed MCR was Rs10 billion.

There is ambiguity among analysts on the name of the fourth bank, but it is believed that the fourth undercapitalised bank is Sindh Bank. The lender has Rs2 billion in losses and equity of Rs 16 billion.

According to Chase Securities, depositors should not worry about their funds in any undercapitalised bank as SBP has a record of saving depositors over shareholders.

Zain Aijaz

Zain Aijaz

Zain is a media student and a writer by passion. He is a certified creative writer from Wesleyan University and enthusiastically writes on non-fiction and political satire. He is vastly experienced in the field of theatre and has served as a theatre mentor across different institutions. Currently, he is a contributor at The Upcut and can be reached at zainaijazdehlvi@gmail.com

Related Posts

PIA privatisation plan & options
Featured

PIA privatisation: federal government decides to form feasible plan

September 28, 2023
Rocket launcher shell explosion kills 8 people
Featured

Rocket launcher shell explosion in Kandhkot tehsil kills 9 people

September 27, 2023
Ogra says to avoid speculations on petroleum prices
Featured

Avoid speculations on petroleum prices as it could disrupt oil supply chain, states Ogra

September 26, 2023

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

TOP NEWS

#GhoomoPakistan amasses 2.3 billion views

#GhoomoPakistan: TikTok’s initiative to showcase Pakistan tourism amasses 2.3 billion views

by Web Desk
September 28, 2023

TikTok's #GhoomoPakistan initiative, launched to showcase Pakistan's hidden treasures, rich culture and stunning landscapes, has concluded with resounding success, amassing...

Civil lawsuit by Letitia James

Civil Lawsuit by Letitia James: NY court finds Trump liable for fraud

by Zain Aijaz
September 27, 2023

NEW YORK: The New York state court in Manhattan has found Donald Trump and his family business liable for fraud...

EBM & SoL inspire youth in Young Leaders Conference

EBM & SoL inspire youth with 100 “ Leaders of Change” Stories at 22nd Young Leaders Conference

by Web Desk
September 27, 2023

KARACHI: English Biscuit Manufacturers (EBM) brought together future leaders for the 22nd time with the Young Leaders Conference. This edition...

YouTube discontinuing Premium Lite

YouTube discontinuing its low-cost subscription plan, Premium Lite

by News Desk
September 26, 2023

YouTube has decided to discontinue its low-cost subscription plan - Premium Lite after two years. This means that after October...

The Upcut is a news platform that brings you the latest news, developments from all walks of life, from all over the world. We cover Business, news from Pakistan and rest of the world, Sports, and Entertainment. You can also read Tech Reviews and How-To Guides for simple solutions and dailylife hacks.

BUSINESS   |   NATIONAL   |   WORLD   |   SPORTS   |   ENTERTAINMENT   |   TECH   |   HOW-TO GUIDES

  • Home
  • About Us
  • Privacy Policy
  • Editorial Guidelines
  • Contact Us
  • Stories

Copyright © 2022 The Upcut. All rights reserved.

No Result
View All Result
  • Business
  • National
  • World
  • Sports
  • Entertainment
    • ZABTHEATRE’23
  • Tech
  • Stories
  • Education
  • YourCut

Copyright © 2022 The Upcut. All rights reserved.

Go to mobile version