State Bank Case Study
The State Bank of Pakistan extends the branching network to approximately all part of …show more content…
Debt Management : The State Bank have its influcece on the capital and money market which are variables in the debt management . These markets possed of wide range of debt securities from treasury bills to bonds etc. The State Bank develops capital and money market of the country with different promotional techniques. State Banks performs the buying and selling of government securities to make changes in the public debt . When the government is in need of finance the debt securities are floated in the market by State Bank with intrest rate policy influencing such actions. It also encourages the funding of debt by other non-government instituions.
8. Credit Control : The State Bank through qualitative and quantitative tools control the credit pattern in the coutry and maintaining stability. The following are the quantitave methods used by the State Bank of Pakistan.
Bank Rate : The State Bank of Pakistan regulates the pattern of economic activity by using bank rate policy. The rate at which the State Bank of Pakistan make lending to the commerical bank. Some times the bank increases the bank rate resulting in low borrowing by genral public through commerical banks . If State Bank wants to increase the borrowings it decreases the bank rate which results in more borrowings by general public.
Open Market Opreations : Open market opreations are perform by the State Bank to buy or sell securities to control the flow of the