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Poverty headcount in percent below poverty line. The privatisation of NCBS has made banking system riskier for depositors. The government should set a deposit insurance corporation to insure deposits in deposit taking financial taking institutions, immediately.
The banking system has performed well recently. Therefore, this assurance to depositors that their saving and checking accounts are safe in the banking will increase investors confidence in the financial system.
Coverage limits of PKR-1.0 - 1.5 million per bank per depositor for individuals, joint and business accounts PKR-5.0 million should be set up to provide an additional level of safety to the system.



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1998-99 2001-02 2004-05
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GoP 32.2 34.5 23.9
WB 31.1 34.4 29.3
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Copyright Business Recorder, 2007

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