Process Of Deposit Mobilization

National Bank of Pakistan

The Process of Deposit Mobilization

Prepared By: Muhammad Yasir

The Process of Deposit Mobilization What is Deposit? Deposit is a claim of customer over the bank on his account.

How Banks Mobilize Deposit? Making Finances Investing in various financial markets

The Process of Deposit Mobilization Purpose of Bank Financings/ Lendings: Positive Return on Loan Provision of Working Capital Shifting of funds into Productive Hands Strengthening Industrializations Backbone of National Economy

Lending Products: Running Finance Cash Finance Demand Finance Consumer Finance PAD

The Process of Deposit Mobilization Investment in Financial Markets: The investment functions are usually performed by Treasury Office of the bank. Treasury invest deposit for:

Ensuring optimum utilization of available resources.

Rising additional resources required for meeting credit demands.

Managing market and liquidity risks.

The Process of Deposit Mobilization

Investment Markets

Money Market

Capital Market

Foreign Exchange Market

1. T.Bills and Govt. Securities

1. Equities e.g. shares and

1. Spot Transactions

2. Bonds of Provincial Govt.

2. Mutual Funds

2. TOM Transactions

3. Defense Saving Certificates

3. Bonds

3. Outright Transactions

4. Mutual Funds etc.

4. Debt Market

4. Swap Transactions

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