Corporate governance in banking

0
903

According to a Press release, which was officially released by Banking Mohtasib Pakistan (Ombudsman), that 11,732 complaints have been received in his office in the first quarter of 2021, it is 135 percent high as compared to the previous year’s same period, which was 4994. It is a high level in increase of complaints against commercial banks from banking consumers. This has been also mentioned that 132.62 million rupees have been recovered from commercial banks as compensation for consumers.
Although it is a big question regarding corporate governance in banking sector of Pakistan, but I was surprised more when I saw the details of penalties from State Bank of Pakistan to the commercial banks. All details are available on the website of State Banks of Pakistan. More than 2200 million rupees have been received as fine from the commercial banks during 2020.

SBP more than 2200 million rupees have been received as fine from the commercial banks during 2020.

During the first quarter Jan-May 2020, an amount of 12.800 million rupees fine was imposed on HBL. In the second quarter Apr-June 2020, UBL 137.001, JS Bank 71.417, Meezan Bank 81.060, Faysal Bank 96.128, Bank of Punjab 286.333 (highest in this period), Habib Bank 204.217, MCB 158.474, NBP 269.810.
Bank Al-Habib 46.802, Habib Metro 22.805, Bank Al-Falah 40.305, Askari Comm 29.814, Bank Islami 11.517, Punjab Provision Co-operative Bank 81.500, Zari Tariqiati Bank 147.250. These all fines are in millions of rupees. This quarter was the worse for banking sector.

During the first quarter Jan-May 2020, an amount of 12.800 million rupees fine was imposed on HBL. In the second quarter Apr-June 2020, UBL 137.001, JS Bank 71.417, Meezan Bank 81.060, Faysal Bank 96.128, Bank of Punjab 286.333 (highest in this period), Habib Bank 204.217, MCB 158.474, NBP 269.810.
Bank Al-Habib 46.802, Habib Metro 22.805, Bank Al-Falah 40.305, Askari Comm 29.814, Bank Islami 11.517, Punjab Provision Co-operative Bank 81.500, Zari Tariqiati Bank 147.250. These all fines are in millions of rupees. This quarter was the worse for banking sector.

All fines were imposed because irregularities found at high levels, there were also procedural violations. All actions have been taken by panel and warned to strengthen its process. Third quarter July-Sept, 2020 was quite low because the fine imposed on four commercial banks, there were, Bank Islami 116.269, Soneri Bank59.234, Bank of Punjab 10.00 and Al-Barka Islamic Bank 86.119 million in Pak rupees.
The last quarter of the year was bit low, only unfortunate bank was Habib Metro the penalty imposed 59.516 million in Pak rupees. It also becomes the violation of instructions. The bank has been advised to conduct an internal inquiry as well.
All above details are an open evidence that the enforcement action department of State Bank of Pakistan is vigilant and it should be more. Actually, these fines are could be the real loss of account holders or the consumers of commercial banks.
The question arises that why the corporate governance in banking sector of Pakistan is so poor and the ignorance and negligence in the system. The answer is very simple that there is a political influence and sethia business style in Pakistan. So, the Board of Directors have no professional approach, according to the requirement of the market, because of the poor corporate governance, fake account holders were found in two commercial banks (falooda wala and paper wala etc.), Summit Bank and UBL are two major examples. So, it’s unfortunate that the corporate governance in banking sector is not improving as required.
We all know the main features of corporate governance. First, the transparency in operations while the accountability becomes second and the last but not the least is the fairness in dealing. We all remember the case of Khadim Ali Shah Bukhari Bank. How it was handled, technically and politically. Mehran Bank scandal was also handled politically. The recent example areHBL New York Branch, where heavy penalties were imposed and the National Bank case in Bangladesh, where operations have been suspended due to violations. Right now, some presidents of Commercial Banks are facing the cases in NAB

State Bank of Pakistan is promoting Islamic banking but there is need to introduce Islamic banking courses in universities. Shariah book should be represented all fiqhs and Islamic school of thoughts, it will improve the products and services.

It is a matter of displeasure that in most of the banks, there are lobbies in employees where unhealthy practices are going on. Government is trying to improve the workforce to empower the women, but so-called lobbies are the major hurdles to improve the number of professional and talented females in financial sector. Pakistani woman is facing the huge problems, whether she is working or trying to be a member of earning bread and butter for her family.
Although in urban society, there are opportunities but in rural society, there are a lot of difficulties, even in corporate sector. First Women Bank was as good initiative for women empowerment by then first women prime minister Mohtarma Benazir Bhutto but because poor corporate governance. Now this institution has been considered as liability.
How we can improve the situation, this is the big challenge for corporate sector, especially in banking. The performance of human resource departments in corporate sector is very much poor. I have observed an HR Department of a commercial bank, where they are always busy to conduct written tests and interviews for new comers, but actually it’s an eye wash. In fact, they have a policy to pick and choose according to the will and wish of powerful internal lobbies or sethes approval.
So they are not honouring the talent and professionalism. There are some pocket unions, which are more powerful than Board of Directors. So, the result is obvious. As we know there are banking academies and banking institute but even then, need to promote professional studies during job as well.
State Bank of Pakistan is promoting Islamic banking but there is need to introduce Islamic banking courses in universities. Shariah book should be represented all fiqhs and Islamic school of thoughts, it will improve the products and services.
Most of the account holders donot know, what the hell is going on, where he or she have trust to deposit his/her savings.
The state bank of Pakistan should publicise the violations of commercial banks in Urdu, English and regional language newspapers, on the end of every quarter.
This could be the best way to evaluate the services and credibility of banks. This publicity can also helpful to improve the corporate governance in banking.
We should not ignore the consumers because they are the actual stakeholder of every market or business sector. If the consumers are satisfied then your organization can flourish by leaps and bounds.

The state bank of Pakistan should publicise the violations of commercial banks in Urdu, English and regional language newspapers, on the end of every quarter.

xosotin chelseathông tin chuyển nhượngcâu lạc bộ bóng đá arsenalbóng đá atalantabundesligacầu thủ haalandUEFAevertonfutebol ao vivofutemaxmulticanaisonbetbóng đá world cupbóng đá inter milantin juventusbenzemala ligaclb leicester cityMUman citymessi lionelsalahnapolineymarpsgronaldoserie atottenhamvalenciaAS ROMALeverkusenac milanmbappenapolinewcastleaston villaliverpoolfa cupreal madridpremier leagueAjaxbao bong da247EPLbarcelonabournemouthaff cupasean footballbên lề sân cỏbáo bóng đá mớibóng đá cúp thế giớitin bóng đá ViệtUEFAbáo bóng đá việt namHuyền thoại bóng đágiải ngoại hạng anhSeagametap chi bong da the gioitin bong da lutrận đấu hôm nayviệt nam bóng đátin nong bong daBóng đá nữthể thao 7m24h bóng đábóng đá hôm naythe thao ngoai hang anhtin nhanh bóng đáphòng thay đồ bóng đábóng đá phủikèo nhà cái onbetbóng đá lu 2thông tin phòng thay đồthe thao vuaapp đánh lô đềdudoanxosoxổ số giải đặc biệthôm nay xổ sốkèo đẹp hôm nayketquaxosokq xskqxsmnsoi cầu ba miềnsoi cau thong kesxkt hôm naythế giới xổ sốxổ số 24hxo.soxoso3mienxo so ba mienxoso dac bietxosodientoanxổ số dự đoánvé số chiều xổxoso ket quaxosokienthietxoso kq hôm nayxoso ktxổ số megaxổ số mới nhất hôm nayxoso truc tiepxoso ViệtSX3MIENxs dự đoánxs mien bac hom nayxs miên namxsmientrungxsmn thu 7con số may mắn hôm nayKQXS 3 miền Bắc Trung Nam Nhanhdự đoán xổ số 3 miềndò vé sốdu doan xo so hom nayket qua xo xoket qua xo so.vntrúng thưởng xo sokq xoso trực tiếpket qua xskqxs 247số miền nams0x0 mienbacxosobamien hôm naysố đẹp hôm naysố đẹp trực tuyếnnuôi số đẹpxo so hom quaxoso ketquaxstruc tiep hom nayxổ số kiến thiết trực tiếpxổ số kq hôm nayso xo kq trực tuyenkết quả xổ số miền bắc trực tiếpxo so miền namxổ số miền nam trực tiếptrực tiếp xổ số hôm nayket wa xsKQ XOSOxoso onlinexo so truc tiep hom nayxsttso mien bac trong ngàyKQXS3Msố so mien bacdu doan xo so onlinedu doan cau loxổ số kenokqxs vnKQXOSOKQXS hôm naytrực tiếp kết quả xổ số ba miềncap lo dep nhat hom naysoi cầu chuẩn hôm nayso ket qua xo soXem kết quả xổ số nhanh nhấtSX3MIENXSMB chủ nhậtKQXSMNkết quả mở giải trực tuyếnGiờ vàng chốt số OnlineĐánh Đề Con Gìdò số miền namdò vé số hôm nayso mo so debach thủ lô đẹp nhất hôm naycầu đề hôm naykết quả xổ số kiến thiết toàn quốccau dep 88xsmb rong bach kimket qua xs 2023dự đoán xổ số hàng ngàyBạch thủ đề miền BắcSoi Cầu MB thần tàisoi cau vip 247soi cầu tốtsoi cầu miễn phísoi cau mb vipxsmb hom nayxs vietlottxsmn hôm naycầu lô đẹpthống kê lô kép xổ số miền Bắcquay thử xsmnxổ số thần tàiQuay thử XSMTxổ số chiều nayxo so mien nam hom nayweb đánh lô đề trực tuyến uy tínKQXS hôm nayxsmb ngày hôm nayXSMT chủ nhậtxổ số Power 6/55KQXS A trúng roycao thủ chốt sốbảng xổ số đặc biệtsoi cầu 247 vipsoi cầu wap 666Soi cầu miễn phí 888 VIPSoi Cau Chuan MBđộc thủ desố miền bắcthần tài cho sốKết quả xổ số thần tàiXem trực tiếp xổ sốXIN SỐ THẦN TÀI THỔ ĐỊACầu lô số đẹplô đẹp vip 24hsoi cầu miễn phí 888xổ số kiến thiết chiều nayXSMN thứ 7 hàng tuầnKết quả Xổ số Hồ Chí Minhnhà cái xổ số Việt NamXổ Số Đại PhátXổ số mới nhất Hôm Nayso xo mb hom nayxxmb88quay thu mbXo so Minh ChinhXS Minh Ngọc trực tiếp hôm nayXSMN 88XSTDxs than taixổ số UY TIN NHẤTxs vietlott 88SOI CẦU SIÊU CHUẨNSoiCauVietlô đẹp hôm nay vipket qua so xo hom naykqxsmb 30 ngàydự đoán xổ số 3 miềnSoi cầu 3 càng chuẩn xácbạch thủ lônuoi lo chuanbắt lô chuẩn theo ngàykq xo-solô 3 càngnuôi lô đề siêu vipcầu Lô Xiên XSMBđề về bao nhiêuSoi cầu x3xổ số kiến thiết ngày hôm nayquay thử xsmttruc tiep kết quả sxmntrực tiếp miền bắckết quả xổ số chấm vnbảng xs đặc biệt năm 2023soi cau xsmbxổ số hà nội hôm naysxmtxsmt hôm nayxs truc tiep mbketqua xo so onlinekqxs onlinexo số hôm nayXS3MTin xs hôm nayxsmn thu2XSMN hom nayxổ số miền bắc trực tiếp hôm naySO XOxsmbsxmn hôm nay188betlink188 xo sosoi cầu vip 88lô tô việtsoi lô việtXS247xs ba miềnchốt lô đẹp nhất hôm naychốt số xsmbCHƠI LÔ TÔsoi cau mn hom naychốt lô chuẩndu doan sxmtdự đoán xổ số onlinerồng bạch kim chốt 3 càng miễn phí hôm naythống kê lô gan miền bắcdàn đề lôCầu Kèo Đặc Biệtchốt cầu may mắnkết quả xổ số miền bắc hômSoi cầu vàng 777thẻ bài onlinedu doan mn 888soi cầu miền nam vipsoi cầu mt vipdàn de hôm nay7 cao thủ chốt sốsoi cau mien phi 7777 cao thủ chốt số nức tiếng3 càng miền bắcrồng bạch kim 777dàn de bất bạion newsddxsmn188betw88w88789bettf88sin88suvipsunwintf88five8812betsv88vn88Top 10 nhà cái uy tínsky88iwinlucky88nhacaisin88oxbetm88vn88w88789betiwinf8betrio66rio66lucky88oxbetvn88188bet789betMay-88five88one88sin88bk88xbetoxbetMU88188BETSV88RIO66ONBET88188betM88M88SV88Jun-68Jun-88one88iwinv9betw388OXBETw388w388onbetonbetonbetonbet88onbet88onbet88onbet88onbetonbetonbetonbetqh88mu88Nhà cái uy tínpog79vp777vp777vipbetvipbetuk88uk88typhu88typhu88tk88tk88sm66sm66me88me888live8live8livesm66me88win798livesm66me88win79pog79pog79vp777vp777uk88uk88tk88tk88luck8luck8kingbet86kingbet86k188k188hr99hr99123b8xbetvnvipbetsv66zbettaisunwin-vntyphu88vn138vwinvwinvi68ee881xbetrio66zbetvn138i9betvipfi88clubcf68onbet88ee88typhu88onbetonbetkhuyenmai12bet-moblie12betmoblietaimienphi247vi68clupcf68clupvipbeti9betqh88onb123onbefsoi cầunổ hũbắn cáđá gàđá gàgame bàicasinosoi cầuxóc đĩagame bàigiải mã giấc mơbầu cuaslot gamecasinonổ hủdàn đềBắn cácasinodàn đềnổ hũtài xỉuslot gamecasinobắn cáđá gàgame bàithể thaogame bàisoi cầukqsssoi cầucờ tướngbắn cágame bàixóc đĩaAG百家乐AG百家乐AG真人AG真人爱游戏华体会华体会im体育kok体育开云体育开云体育开云体育乐鱼体育乐鱼体育欧宝体育ob体育亚博体育亚博体育亚博体育亚博体育亚博体育亚博体育开云体育开云体育棋牌棋牌沙巴体育买球平台新葡京娱乐开云体育mu88qh88