2013 Annual Report slide image

2013 Annual Report

HOW DOES A BANK WORK? SAVERS Save now; spend later For the savers, the Bank:Compensates for the savings deposited (interest), provides safety, mobility, convenience and services. As time goes by, those who have money will have additional cash from interest they receive. Deposits Interest BANK GOVERNMENT Build reserves for future investment. $ $ $ $ LEGAL ENTITIES Save to plan their investments in order to grow. $ $ $ PEOPLE Save to have cash in order to achieve their dreams in the future. $ $ INTEREST (%) The bank compensates the cash it borrowed from the savers by paying interest, as a premium to save their cash. 14 Annual Report 2013 کے DEBTORS Spend now; pay later For the debtors, the Bank: Finances expenses these agents cannot afford. The Bank gives immediate access to capital for those who have no money now to spend. THE MAIN FUNCTION OF THE BANK IS... to act as the middle person between the savings generated by agents with a surplus of cash and agents that need cash to invest. By turning savings into invest- ments, Banks accelerate the development of the country. Loans Installments (Interest) GOVERNMENT Makes investment in cities, states and in the whole country. LEGAL ENTITIES Make investments in plants, stores, inventories and people. PEOPLE They can achieve their dreams now. Buy a house, study, travel, marry, have children. $ $ $ $ $ $ $ A $ $ SPREAD It's the main compensation paid by the bank. It is the difference between the interest rates it charges from debtors and the interest rates it pays to savers. INTEREST (%) The bank charges interest paid by debtors as compensation for the cash borrowed and this allows debtors to have immediate access to capital. $ +A #A +A $ TT $ 15
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