Role of Financial Institutions in Economic Development

1. Roles of Financial Institutions
in Economic Development
Meezan Bank
Presented by:
Syeda Zeerak (BM-35240)
Rida Faheem (BM-26035)
Asma Mir (BM-26202)

2. Introduction
Bank
A financial establishment that uses:
• Money deposited by customers for
investment
• Pays it out when required
• Makes loans at interest
• Exchanges currency

3. Introduction (cont.)
Meezan Bank
CEO Mr. Irfan Siddiqui
Founded (Publicly-listed) January 27, 1997
Licensed as Islamic Bank January 2002
Head Quarter Meezan House - Karachi, Pakistan
Branches 430 branches in more than 100
cities
Market share in Islamic Banking
Industry
35%
Slogan The Premier Islamic Bank

4. Mission
To be a premier Islamic bank, offering a one-stop shop for
innovative value-added products and services to our customers
within the bounds of Shariah, while optimizing the stakeholders
value through an organizational culture based on learning, fairness,
respect for individual enterprise and performance.

5. Vision
Establish Islamic banking as banking of first choice to facilitate the
implementation of an equitable economic system, providing a
strong foundation for establishing a fair and just society for
mankind.

6. Literature Review
Bashir (2000)
• Analyzed important bank characteristics that affect the performance
of Islamic banks by controlling economic and financial structure
measures.
• Studied fourteen Islamic banks from Bahrain, Egypt, Jordan, Kuwait,
Qatar, Sudan, Turkey, and United Arab Emirates between 1993 and
1998.
• Results from the study show that Islamic banks profitability is
positively related to equity and loans.

7. Literature Review (cont.)
Hasan and Dridi (2010)
• Conducted a study to determine the impact of the global financial
crisis on the performance of Islamic banks and its comparison with
the conventional banks.
• He collect data from Bahrain, Jordan, Kuwait, Malaysia, Qatar, Saudi
Arabia, Turkey, and the UAE.
• Results show that in the aspect of profitability, Islamic banks
experienced a significant decline in profitability during the global
financial crisis period.

8. Literature Review (cont.)
Aurangzeb (2012)
• Studied the contributions of banking sectors on the economic growth
in Pakistan.
• He used deposit, investment, advances, profitability and interest
earning of the commercial banks for the period of 2001 to 2010.
• The statistical result of his study shows that deposit, investment, loan
and advances, profitability and interest earning were all significant
with positive impact on the economic growth of the Pakistan.

9. Literature Review (cont.)
Kader and Asarpota (2007)
• Utilize bank level data to evaluate the performance of the UAE Islamic
banks.
• Balance sheets and income statements of 3 Islamic banks and 5
conventional banks in the time period 2000 to 2004 are used to
compile data for the study.
• The results of the study show that in comparison with UAE
conventional banks, Islamic banks of UAE are relatively more
profitable, less liquid, less risky, and more efficient.

10. Literature Review (cont.)
Arslan and Ergec (2010)
• They measured the efficiencies of four Islamic banks and 26
conventional banks in Turkey.
• They collect the data which cover the period of 2006-2009.
• They found that the Islamic banks performed better.

11. Literature Review (cont.)
Samad and Hassan (1999)
• They examined the performance of Islam Malaysia Berhad Bank.
• They collect the data which cover the period of 1984-1997.
• It was found, when compared to eight conventional banks, that Islam
Malaysia Berhad Bank was more liquid and less risky.

12. Literature Review (cont.)
Er and Uysal (2012)
• Comparatively analyzed Islamic and conventional banks to measure
the efficiency level.
• They collect the data by measuring the efficiency level of 4 Islamic
and 26 conventional banks for the period of 2005-2010.
• They found that the total efficiency score of Islamic banks were higher
in the selected period.

13. Role or Contribution in Economic
Development
Shaukat Khanum Memorial Cancer Hospital (2012)
• MoU for donation collection boxes in over 300 branches of meezan
bank.
• Arranged a seminar for its employees on anti-tobacco day to spread
awareness of tobacco related diseases.

14. Role or Contribution in Economic
Development (cont.)
CHILDREN CANCER HOSPITAL
AND
AFZAAL MEMORIAL THALASSEMIA FOUNDATION (2013)
• A foundation which provides free health-care to Thalassemia-affected
children.
• Meezan bank support them in promoting awareness about cancer
and Thalassemia and their prevention.
• Branches of Meezan Bank displayed banners and distributed flyers
carrying information about the diseases as well as details for charity
contribution to these organizations.

15. Role or Contribution in Economic
Development (cont.)
DONATION OF COMPUTERS TO UNDERPRIVILEGED EDUCATIONAL
INSTITUTES (2014)
• Meezan Bank donated refurbished computers to a number of schools
that are specifically catering to the low income groups.
• Schools that benefitted from these computers were Idara Al-Khair,
Kiran School Liyari, Britannica School, Sharmeen Foundation and
Intellect School.

16. Role or Contribution in Economic
Development (cont.)
FUNFAIR FOR BEHBUD ASSOCIATION KARACHI (2014)
• Meezan Bank facilitated Behbud Association financially to organize a
fund raising activity at the Carlton Hotel, Karachi. The carnival had
been very successful in collecting funds for the association and
greatly raised awareness about Behbud’s aim to improve the lives of
the underpriveliged sections of our society, particularly women and
children.

17. CONCLUSION
Meezan bank is first largest Islamic bank in Pakistan. Having the largest
branch network and product range, Meezan Bank bears the critical
responsibility of leading the way forward in establishing a stable and
dynamic Islamic banking system. Meezan Bank aims to fulfil its prime
objective of providing customers accessibility and convenience, within
an atmosphere and culture of dedicated service and recognition of
their needs. As per the charter of the Bank, it is mandatory on the
management and employees to ensure application of Shari principles
and guidelines issued by the Shari Supervisory Board and Shari Advisor
and to ensure Shari compliance in all activities of the Bank. The prime
responsibility for ensuring Shari-compliance of the Bank’s operations
thus lies with the management.