The State Bank of Pakistan (SBP) has reassured the public that bank deposits in the country are safe. The central bank issued a press release to address concerns raised after a statement made by SBP Deputy Governor Inayat Hussain during a meeting of the Senate Standing Committee on Finance and Revenue. Hussain had explained that deposits up to Rs500,000 are protected by the Deposit Protection Corporation (DPC), and around 94% of depositors fall into this category. The SBP clarified that deposits are secure due to a strong banking system in Pakistan under a robust regulatory framework. The banking sector is well-capitalized and highly liquid, with low levels of non-performing loans. The sector’s profitability in the first half of the current calendar year was significantly higher than the previous year. The capital adequacy ratio of banks has also increased, surpassing regulatory requirements. The DPC provides an additional layer of protection by offering insurance coverage of up to Rs500,000 to every depositor, aligning with international practices. In case of a bank failure, the insured amount is immediately available to depositors, and the remaining deposits are recoverable through a regulatory process. The deposit protection system ensures the safety of depositors’ funds in the unlikely event of a bank failure.
>>Join our Facebook Group be part of community. <<