A rapid growth is seen in the banking sector of China, as the sector is spreading itself in newer directions. The last five years remained a growing period for markets in Asia due to the positive demographics, market reforms and other political reasons.
The trend of Asian markets is encouraging for global banking sectors that are willing to provide better services. Chinese banks keeping in terms with the World Trade Organization's regulation is able to exploit opportunity to its full capacity. According to a report in Asia Times, the Industrial and Commercial Bank of China (ICBC) is planning to operate in Pakistan.
A mutual agreement between National Bank of Pakistan (NBP) and ICBC has been reached for carrying banking and financial transactions. As per the Chairman of ICBC board, Mr. Jiang Jianqing this decision has been taken looking at the economic performance of Pakistan at the rate of 7%. It is positive about doing more business in Pakistan provided the economy remains stable.
Due to the presence of these International Banks, the economical conditions in Pakistan is improving further to the extent that it now has managed to get better rating for international credit. Investors' faith in Pakistan trading policies can be observed by the victorious initiation of sovereign bond introduced by Pakistan. The popular banks of Pakistan such as the NBP, HBL, Muslim Commercial Bank and Allied Bank of Pakistan the growth has been commendable during the recent years. With more and more banks' interest rising to have a share of the profit market, it is predicted to benefit consumer lending.
As per the State bank of Pakistan, in the year 2006-07 the investment brought in to Pakistan through foreign banks amounts to $700 million. The future for overseas banks is bright in Pakistan with the economy expected to grow by 7% in the current year. So far the International banks have achieved high returns and with the idea to gain more profits, the banks are expected to invest more.
According to an analyst at RNCOS, the changing policies in Pakistan for foreign investors are explored by international banks to its full extent. This is working as a win-win situation for the banks as well as Pakistan's economy. Banks are gaining high profits and the economy is getting better financial support from the banks. In the coming days with more Banks providing service the competition level is bound to rise, improving the services further.
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