Bank deposits have risen to a new historic high of Rs26.398 trillion, recording a 17.8% growth in October 2023 due to high interest rates, according to the State Bank of Pakistan (SBP).
The banking sector deposits reached an all-time high growth of Rs3.986 trillion in October 2023 compared to the previous year. The SBP spokesperson announced that bank deposits have surged by 17.8% to reach Rs26.398 trillion, up from Rs22.412 trillion in October 2022.
Economic experts attributed the rise in bank deposits to the high interest rate of 22%, which provided investors with better profits. However, investors faced challenges after crackdowns on gold and the US Dollar (USD) to combat smuggling.
To address concerns about the safety of bank deposits, the SBP emphasized the soundness and security of the Pakistan banking system. The central bank stated that the banking system is adequately capitalized, highly liquid, and profitable, with robust regulatory and supervisory frameworks in place. Additionally, 94% of depositors are fully protected under the Deposit Protection Act 2016.
The SBP clarified that certain media reports were misleading, implying that bank deposits above Rs500,000 in Pakistan were unsafe. The SBP reiterated that the deposits are secure due to the strong and reliable banking system.
Bank deposits in Pakistan reached a new historic high of Rs26.398 trillion in October 2023, recording a growth of 17.8% due to high interest rates. The banking sector saw a significant increase of Rs3.986 trillion compared to October 2022, according to the State Bank of Pakistan (SBP). Experts attribute this rise to the attractive profits offered by the banking system and the crackdown on gold and USD smuggling. The SBP reassured the public that the banking system is safe and protected under a robust regulatory framework.
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