KARACHI, Nov 10 (NNI): Bank deposits have risen to a new historic high of Rs26.398 trillion, recording a 17.8% growth in October 2023 due to high interest rate.
The banking sector deposits recorded an all-time high growth of Rs3.986
trillion in October 2023 as compared to October 2022, according to the
State Bank of Pakistan (SBP).
The SBP spokesperson said that the banking sector deposits reached to a
new historic high, recording a surge of 17.8% to Rs3,986 trillion. The
bank deposits reached a record Rs26.398 trillion as compared to Rs22.412
trillion in October 2022.
The economic experts said that the bank deposits witnessed a rise due to
high interest rate of 22%. The investors were getting better profits
from the banking system due to the interest rate.
They added that investors faced difficulties after massive crackdowns on
gold and the US Dollar (USD) to curb smuggling.
Last month, the central bank clarified that the Pakistan banking system
is safe and sound under a robust regulatory and supervisory framework of
SBP with a layer of protection through insurance cover and all the
deposits were perfectly safe.
The banking system in Pakistan is adequately capitalized, highly liquid
and profitable and its ability to withstand a set of severe shocks has
further improved while 94% of the depositors were fully protected under
the Deposit Protection Act 2016, the central bank clarified through a
statement issued here.
The SBP spokesperson said that certain sections of the media, on the
basis of a statement given by Deputy Governor SBP, Dr Inayat Hussain
during the meeting of Senate Standing Committee on Finance and Revenue,
were implying as if bank deposits above Rs500,000 in the banking system
in Pakistan were unsafe.
The SBP categorically stated that the deposits were safe owing to a
sound banking system in Pakistan that was working under a robust
regulatory and supervisory framework of SBP while the sector was
adequately capitalized, highly liquid and profitable with a low level of
net non-performing loans, i.e. bad loans. NNI
