State Bank of Pakistan released a Financial Stability Review for the year 2020 presenting performance and risk assessment of various banks and financial institutions. As per the report, the banking sector posted strong performance and resilience.

The Review report also mentioned that the financial system of Pakistan remained resilient and continued to perform its operations amid a difficult operating environment. The sector’s asset base increased by 14 percent in CY20 as compared to 11.61 percent in the previous year

The banking sector experienced a moderate rise in credit risk in the first half of 2020, which decreased in the second half, as SBP’s regulatory relief measures provided support.

The banking sector Capital adequacy ratio (CAR) increased by 156 basis points to 18.56 percent at the end of CY20.

Despite operational constraints triggered by the pandemic, Bank’s Financial Market Infrastructures (FMIs) remained operative and performed efficiently without any disruption.

More importantly, increased customer preference for use of digital financial services and supportive policy measures of SBP gave a strong support to E-banking transactions

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