Dr. Hussain had previously pointed out that Pakistani bank depositors are legally insured up to PKR500,000 by the DPC, which covers 94% of depositors. The DPC, established in 2018 under the Deposit Protection Corporation Act, 2016, compensates depositors for losses from bank failures and covers domestic operations of member banks.
The protection level aligns with global standards, standing at 1.3 times GDP per capita. Bank deposits in Pakistan hit PKR22.8 trillion (USD1 = PKR284.047) as of June 2022, bolstered by Roshan Digital Account (RDA) inflows and a high return rate. Growth was also seen in eligible deposits at DPC member banks as per the SBP’s DPC annual report for 2021–2022.
The strength of Pakistan’s banking sector is reflected in its capital adequacy ratio of 16.1% and a low non-performing loans ratio of 0.7%, both indicators surpassing minimum regulatory and global standards.
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Source: Economy - investing.com
