SBP Financial Stability 2022 Review Report released

Islamabad: The Financial Stability 2022 Review Report issued by State Bank of Pakistan (SBP) stated that last year was difficult for Pakistan’s economy.

According to SBP, economic imbalances were aggravated by unfavorable external environment, double deficit, inflation, floods and delay in International Monetary Fund (IMF) program had an impact.

The review report stated that global commodity prices and interest rates also remained influential, while the financial sector performed well despite all the headwinds.

It has also been said in the report that financial sector assets were increased by 18.3 percent due to investment. Banks' asset growth was 19.1 percent, Islamic banking showed a growth rate of 29.6 percent, while the microfinance sector remained under pressure due to deficit.

According to State Bank, the ratio of non-performing loans decreased from 7.9 percent to 7.3 percent in 2022 while the second phase of the payment system was implemented in 2022.

The review report told that licensing and regulatory framework for digital banking has been given in the year 2022.

Moreover the report said that State Bank's comprehensive supervision and protection framework is working for financial stability. This supervision and protection framework has been further strengthened in the financial year 2022.

According to the bank, Financial Stability Review is the compliance of State Bank Act. Financial Stability Review is an examination of market, infrastructure, performance and risks of banks and financial institutions.