Banking hinges on the saving environment

The Pakistani State Bank governor, Muhammad Yaqub, has identified two issues facing the banking system of the country. One, the condition of banks, more actutely of nationalized commercial banks. Two, the state of savings. After Moeen Qureishi, the caretaker prime minister, exposed the defaults of many loans made by banks, the state of the banking sector came under much question. Yaqub rightly criticized Qureishi's move, which created doubts about banks before their privatization. While classical economics sees the drive for profits and the challenges of competition as influences on bank behavior, in Pakistan's case, the public banks that dominate the field are primarily influenced by those with political clout. Given tendencies toward government corruption in Pakistan, it is no surprise that corruption has taken place in the banking sector. Yaqub seeks confidentiality in banking, yet the inappropriate political element in the field makes it necessary to establish accountabilit