Roles of Financial Institutions in Economic

DevelopmentMeezan Bank

Presented by:Syeda Zeerak (BM-35240)Rida Faheem (BM-26035)Asma Mir (BM-26202)

Introduction

BankA financial establishment that uses:• Money deposited by customers for

investment• Pays it out when required• Makes loans at interest• Exchanges currency

Introduction (cont.)

Meezan BankCEO 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

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

Role or Contribution in Economic Development (cont.)

CHILDREN CANCER HOSPITALAND

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.

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.

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.

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.