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 MGT604 - Management of Financial Institutions (alt. code=BNK604)
Question No. 1                                                        (20 marks)

Read the article “Imbalance in Bank Lending” Published in DAWN
dated 11-6-2012 carefully and answer the following questions in your own words:

Requirement:

     What causes of imbalances are found in today’s Bank lending?
     Why foreign banks are lagging behind in banking practices than local banks in
       Pakistan as pointed out by the author?
     SME   sector   in   Pakistan   is   facing   the   problem   of   limited   access   to   the   bank
       financing. Describe some major factors responsible for this trendy issue.
     How does the author see branchless banking in Pakistan?

Important Note:

              The article can be downloaded from the following Link:
 
http://epaper.dawn.com/Advt.php?StoryImage=11_06_2012_606_003 
Copy this link and paste it to Internet explorer to open the article.

Question No. 2                                                        (5 marks)

A Supervisory Framework known as “CAMEL” is used by various Central Banks in the
world for assessing the performance of commercial banks in their respective countries.
The same is being practiced by State Bank of Pakistan.

Requirement:
 Briefly explain the significance of CAMEL’s Supervisory Framework for ensuring the
soundness of the banking system in our country.