Increase in remittances is positive Sign for Pakistani banks
According to the report, the global rating agency Moody’s has released a report on Pakistan, which says that the increase in remittances is positive for Pakistani banks.
Moody’s says Pakistan’s 7th position in remittance payments in 2018, the increase in house hold deposits from remittances, which is positive for Pakistani banks, will increase deposits to improve banks’ profitability and liquidity.
According to the World Rating Agency, the profitability of Pakistani banks will gradually increase due to the decline in personal financing trends, while it is predicted that Pakistan’s remittances are expected to increase further.
Remember that earlier this month, the global rating agency Moody’s said that the outlook of Pakistani banks is stable and that outlook will remain stable for the next 18 months, due to the strong outlook on deposits and government borrowings.
According to Moody’s, the situation of deposits and liquidity of Pakistani banks is good, banks have invested in government bonds in large quantities, the profitability of banks will be below historical level.
The World Ratings Agency said that banks have benefited from improving the borrowing capacity of the state. Despite the slowing of economic growth, interest rates are estimated to remain unchanged for many years. Economic activities will improve due to development projects, law and order and electricity.