COMMERCIAL banks have started doing insurance business which, in fact, compromises the two divergent business activities.
It appears that not far away, insurance companies too may converge on banking type of business in a tit-for-tat response.
The banks are already having a field day and profits are showing new highs with each passing year.
The banks may be directed to pay profits on a ‘profit or loss’ sharing basis instead of a fixed return which by all means is paltry.
Moreover, the State Bank of Pakistan should direct the banks to pay profit on daily balances being maintained in an account instead of on a minimum monthly basis.
This would be in line of their practice of charging mark-up from their loan seekers or debtors on daily outstanding debit balances.
Source: Dawn.com
No comments:
Post a Comment