KARACHI: The State Bank of Pakistan has come out with strong support for the banking system, saying no-one should undermine its overall stability and performance.

The banking industry’s performance was satisfactory as its equity base increased by 11 per cent to above Rs1 trillion in September this year from Rs900 billion in September 2013, the SBP said in a statement on Monday.

“The capital position of the banking system will further strengthen due to expected fresh capital inflows and improving profitability,” it said.

A number of stories appeared in the media speaking about the weaknesses in the banking system after the government placed KASB Bank under a six-month moratorium.

However, the SBP said, “Regulatory actions like the one taken in respect of KASB Bank only aim at resolving the problems faced by the institution thus protecting depositors’ interest.”

The central bank said it policies were directed towards safeguarding the interest of depositors and stability of the banking system. “The banking sector’s performance has been quite impressive.

The banks in Pakistan earned a historical profit-before-tax of Rs176bn for first nine months of the year 2014, while its solvency remains strong with Capital Adequacy Ratio (CAR) of 15.5pc.”

Published in Dawn, November 25th , 2014