Banks should be incentivized to grow: Shaukat Tareen

          
The banking industry should be incentivized to increase its footprint throughout the country as the bank-to-GDP ratio is still lower in the region standing at 33 percent compared with 50 percent of Bangladesh and 65 of India.

Speaking to the launching ceremony of Silk Bank Islamic Banking Division “Emaan”, Shaukat Tareen, Advisor to CEO of Silk Bank and former finance minister said that security situation of the country and power crisis must be resolved for growth of banking and various sectors in the country and the government seems serious to take all steps towards all issues including tax reforms as well.
He said banking sector should be encouraged increase its penetration in untapped market particularly in Small and Medium Sized (SMEs) hence the real economy could grow at rapid pace.
He said the credit is the right of private sector and it should be utilized properly in all potential sectors boosting up the businesses of various sector in the industry. The government should devise a sector-wise strategy and share profit and losses with companies so the banks money is exploited in real sector and the government and entrepreneurs will reap the benefit mutually.
Tareen said that Islamic banking has a potential banking throughout the country so as Silk Bank has decided to come up with its sharia banking.
We have set up target to expand the number of Silk Bank’s branches 250 from existing 90 operating in different cities but the Islamic banking will be given impetus and importance more than the conventional banking.
Currently, the Silk Bank has opened up branches of its Islamic Banking Division Emaan in ten major cities and its management has planned to launch all available products and services for commercial sectors and consumers.
 Regarding the constant depreciation of rupees against dollar, Tareen added that rupee should have been devalued against dollar 6-7 percent every years but it has been stopped by the banking regulators through its market operations though the rupee is overvalued present versus dollar.
He viewed that extended loan facility of $5.3 billion will ease down the pressure of the rupee and it will slightly recover its value against the dollar in future.