59-473: HBL may refer to: HBL F.C., a Pakistani football club HBL Pakistan , a Pakistani bank Habib Bank Limited cricket team , a Pakistani cricket team Handball-Bundesliga , a professional handball league in Germany Himalayan Bank Limited , a Nepalese bank Homer D. Babbidge Library , an American academic library Hufvudstadsbladet ,
118-524: A Swedish-language newspaper in Finland Topics referred to by the same term [REDACTED] This disambiguation page lists articles associated with the title HBL . If an internal link led you here, you may wish to change the link to point directly to the intended article. Retrieved from " https://en.wikipedia.org/w/index.php?title=HBL&oldid=1032084362 " Category : Disambiguation pages Hidden categories: Short description
177-412: A bank account is considered indispensable by most businesses and individuals. Non-banks that provide payment services such as remittance companies are normally not considered as an adequate substitute for a bank account. Banks issue new money when they make loans. In contemporary banking systems, regulators set a minimum level of reserve funds that banks must hold against the deposit liabilities created by
236-425: A large number of small to medium-sized institutions in its banking system. As of November 2009, China's top four banks have in excess of 67,000 branches ( ICBC :18000+, BOC :12000+, CCB :13000+, ABC :24000+) with an additional 140 smaller banks with an undetermined number of branches. Japan had 129 banks and 12,000 branches. In 2004, Germany, France, and Italy each had more than 30,000 branches – more than double
295-416: A safe and convenient form of money backed by the goldsmith's promise to pay, allowing goldsmiths to advance loans with little risk of default . Thus the goldsmiths of London became the forerunners of banking by creating new money based on credit. The Bank of England originated the permanent issue of banknotes in 1695. The Royal Bank of Scotland established the first overdraft facility in 1728. By
354-609: A subsidiary in Ürümqi , Xinjiang , becoming the first Pakistani bank to operate in China . It became the first Pakistani bank and one of three banks from South Asia & MENA Region to open branches in China, with permission to trade in local currency, the Renminbi Yuan (CNY). In February 2018, HBL appointed senior banker Muhammad Aurangzeb (formerly CEO of Global Corporate Bank – Asia Pacific at JP Morgan ) as its President & CEO following
413-399: A variety of different ways including interest, transaction fees and financial advice. Traditionally, the most significant method is via charging interest on the capital it lends out to customers. The bank profits from the difference between the level of interest it pays for deposits and other sources of funds, and the level of interest it charges in its lending activities. This difference
472-446: Is a bank regulation , which sets a framework within which a bank or depository institution must manage its balance sheet . The categorisation of assets and capital is highly standardised so that it can be risk weighted . After the financial crisis of 2007–2008 , regulators force banks to issue Contingent convertible bonds (CoCos). These are hybrid capital securities that absorb losses in accordance with their contractual terms when
531-400: Is a Bills of Exchange Act that codifies the law in relation to negotiable instruments , including cheques, and this Act contains a statutory definition of the term banker : banker includes a body of persons, whether incorporated or not, who carry on the business of banking' (Section 2, Interpretation). Although this definition seems circular, it is actually functional, because it ensures that
590-403: Is a list of the largest deals in history in terms of value with participation from at least one bank: Currently, commercial banks are regulated in most jurisdictions by government entities and require a special bank license to operate. Usually, the definition of the business of banking for the purposes of regulation is extended to include acceptance of deposits, even if they are not repayable to
649-868: Is based in Geneva , Switzerland. HBL is the largest domestic multinational company in Pakistan in terms of assets , and has repeatedly ranked as the top Pakistani company in the Forbes Global 2000 . It is also Pakistan's largest private sector bank, with over 1,700 branches and more than 2,000 ATMs. All HBL ATMs are linked to Visa and Mastercard , China UnionPay , and to the domestic 1LINK , MNET , and PayPak switches. IBFT (Interbank Funds Transfer) facility and utility bill payment capability are also provided at HBL ATMs. HBL branches also exchange foreign currency, initiate SWIFT and FEDWIRE transfers, and facilitate RAAST real-time money transfer transactions. Habib Bank Limited
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#1732876296975708-573: Is different from Wikidata All article disambiguation pages All disambiguation pages HBL Pakistan Habib Bank Limited ( Urdu : حبیب بینک ) commonly known as HBL , is a Pakistani commercial bank based at Habib Bank Plaza , Karachi , Pakistan. Established in 1941 by the Habib Family , HBL is Pakistan's oldest, largest and the first commercial bank. In 1951, it opened its first international branch in Colombo , Sri Lanka . In 1972,
767-431: Is referred to as the spread between the cost of funds and the loan interest rate. Historically, profitability from lending activities has been cyclical and dependent on the needs and strengths of loan customers and the stage of the economic cycle . Fees and financial advice constitute a more stable revenue stream and banks have therefore placed more emphasis on these revenue lines to smooth their financial performance. In
826-605: The Basel Accords . Banking in its modern sense evolved in the fourteenth century in the prosperous cities of Renaissance Italy but, in many ways, functioned as a continuation of ideas and concepts of credit and lending that had their roots in the ancient world . In the history of banking , a number of banking dynasties – notably, the Medicis , the Pazzi , the Fuggers ,
885-705: The Federal Deposit Insurance Corporation (FDIC) as a regulator. However, for soundness examinations (i.e., whether a bank is operating in a sound manner), the Federal Reserve is the primary federal regulator for Fed-member state banks; the Office of the Comptroller of the Currency (OCC) is the primary federal regulator for national banks. State non-member banks are examined by the state agencies as well as
944-718: The Government of Pakistan and subsequently the bank was delisted from the Karachi Stock Exchange . On 13 June 2002, Pakistan's Privatisation Commission announced that the Government of Pakistan would grant the Aga Khan Fund for Economic Development (AKFED), a subsidiary of the Aga Khan Development Network , majority ownership of HBL against AKFED's investment in the bank. In 2002, HBL's UK operation came close to being shut down due to regulatory issues with
1003-631: The Great Depression , the U.S. Savings and Loan crisis in the 1980s and early 1990s, the Japanese banking crisis during the 1990s, and the sub-prime mortgage crisis in the 2000s. The 2023 global banking crisis is the latest of these crises: In March 2023, liquidity shortages and bank insolvencies led to three bank failures in the United States , and within two weeks, several of the world's largest banks failed or were shut down by regulators Assets of
1062-522: The Medici Bank , in 1397. The Republic of Genoa founded the earliest-known state deposit bank, and Banco di San Giorgio (Bank of St. George), in 1407 at Genoa , Italy. Fractional reserve banking and the issue of banknotes emerged in the 17th and 18th centuries. Merchants started to store their gold with the goldsmiths of London , who possessed private vaults , and who charged a fee for that service. In exchange for each deposit of precious metal,
1121-563: The Renaissance by Florentine bankers, who used to make their transactions atop desks covered by green tablecloths. The definition of a bank varies from country to country. See the relevant country pages for more information. Under English common law , a banker is defined as a person who carries on the business of banking by conducting current accounts for their customers, paying cheques drawn on them and also collecting cheques for their customers. In most common law jurisdictions there
1180-577: The Welsers , the Berenbergs , and the Rothschilds – have played a central role over many centuries. The oldest existing retail bank is Banca Monte dei Paschi di Siena (founded in 1472), while the oldest existing merchant bank is Berenberg Bank (founded in 1590). Banking as an archaic activity (or quasi-banking ) is thought to have begun as early as the end of the 4th millennium BCE, to
1239-474: The title sponsor of the Pakistan Super League (PSL) since the league's first edition in 2016. In November 2021, the sponsorship deal was renewed for another four-year cycle until 2025. Banking industry A bank is a financial institution that accepts deposits from the public and creates a demand deposit while simultaneously making loans . Lending activities can be directly performed by
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#17328762969751298-474: The 15,000 branches in the United Kingdom. Between 1985 and 2018 banks engaged in around 28,798 mergers or acquisitions, either as the acquirer or the target company. The overall known value of these deals cumulates to around 5,169 bil. USD. In terms of value, there have been two major waves (1999 and 2007) which both peaked at around 460 bil. USD followed by a steep decline (−82% from 2007 until 2018). Here
1357-404: The 19th century, we find in ordinary cases of deposits, of money with banking corporations, or bankers, the transaction amounts to a mere loan, or mutuum , and the bank is to restore, not the same money, but an equivalent sum, whenever it is demanded and money, when paid into a bank, ceases altogether to be the money of the principal (see Parker v. Marchant, 1 Phillips 360); it is then the money of
1416-419: The 3rd millennia BCE. The present era of banking can be traced to medieval and early Renaissance Italy, to the rich cities in the centre and north like Florence , Lucca , Siena , Venice and Genoa . The Bardi and Peruzzi families dominated banking in 14th-century Florence, establishing branches in many other parts of Europe. Giovanni di Bicci de' Medici set up one of the most famous Italian banks,
1475-532: The Aga Khan Fund for Economic Development (51%), and the remaining 49% of shares are in free float. CDC Group holds 4.99%, and the International Finance Corporation holds 0.87%, while individuals, institutions, and funds hold the rest of the shares. In June 2015, the bank acquired Barclays 's Pakistan operations and absorbed the staff. On 18 April 2016, HBL received a licence to operate
1534-511: The DFS told Karachi-listed Habib Bank (HBL) to institute a series of reforms about the bank's policies for preventing illicit money transfers. In a December 2015 statement, the DFS identified issues in the bank's anti-money laundering compliance. Habib also allegedly cleared transactions to a cybercriminal wanted by the US Federal Bureau of Investigation and a Chinese weapons manufacturer that
1593-522: The FDIC. National banks have one primary regulator – the OCC. Each regulatory agency has its own set of rules and regulations to which banks and thrifts must adhere. The Federal Financial Institutions Examination Council (FFIEC) was established in 1979 as a formal inter-agency body empowered to prescribe uniform principles, standards, and report forms for the federal examination of financial institutions. Although
1652-470: The Financial Services Authority. The problem was resolved by converting the operations to a subsidiary. Then Habib Bank Limited and Allied Bank of Pakistan merged their operations (Habib contributed its six branches and Allied its four branches) into a new bank, called Habib-Allied International Bank, in which Habib Bank has a 90.5% shareholding, while Allied Bank has 9.5%. In December 2003,
1711-576: The Government of Pakistan granted AKFED rights to 51% of the shareholding in the bank against an investment of PKR 22.409 billion (US$ 389 million). In February 2004, Government of Pakistan handed over management control of Habib Bank to AKFED. The Board of Directors was reconstituted to have four AKFED nominees, including the Chairman and the President/CEO, and three Government of Pakistan nominees. In 2013,
1770-736: The Muslim League, subsequently serving as the appointed banker for the Muslim League Fund, the Pakistan Fund, and the Quaid-e-Azam Bihar Relief Fund. Relations between Jinnah and Mahomedali Habib, a key figure in the bank, were notably close. In 1937, under Mahomedali's influence, the Habib family converted from Isma'ilism to Isnasheri Shia Islam , aligning religiously more closely with Jinnah. In early 1947, at Jinnah's request,
1829-567: The UK, for example, the Financial Services Authority licenses banks, and some commercial banks (such as the Bank of Scotland ) issue their own banknotes in addition to those issued by the Bank of England , the UK government's central bank. Banking law is based on a contractual analysis of the relationship between the bank (defined above) and the customer – defined as any entity for which
HBL - Misplaced Pages Continue
1888-484: The bank acquired Citibank Pakistan consumer business for Rs. 2 billion . In April 2015, the Government of Pakistan sold its 41.5% stake or 609 million shares in the bank for $ 1.02 billion. According to the finance ministry, the strike price of Rs. 168 per share (compared to the floor price of Rs. 166 per share) was recommended by the Privatisation Commission Board. The bank's owners now comprise
1947-639: The bank agrees to conduct an account. The law implies rights and obligations into this relationship as follows: These implied contractual terms may be modified by express agreement between the customer and the bank. The statutes and regulations in force within a particular jurisdiction may also modify the above terms or create new rights, obligations, or limitations relevant to the bank-customer relationship. Some types of financial institutions, such as building societies and credit unions , may be partly or wholly exempt from bank license requirements, and therefore regulated under separate rules. The requirements for
2006-515: The bank moved its headquarters to the Habib Bank Plaza , which became the tallest building in South Asia at the time. The Government nationalised the bank in 1974 and privatised it in 2004; at that time, the Aga Khan Fund for Economic Development acquired a controlling share and management control. HBL significant shareholding lies with the Aga Khan Fund for Economic Development (AKFED) which
2065-571: The bank or indirectly through capital markets . Whereas banks play an important role in financial stability and the economy of a country, most jurisdictions exercise a high degree of regulation over banks. Most countries have institutionalized a system known as fractional-reserve banking , under which banks hold liquid assets equal to only a portion of their current liabilities. In addition to other regulations intended to ensure liquidity , banks are generally subject to minimum capital requirements based on an international set of capital standards,
2124-411: The bank will not repay it), and interest rate risk (the possibility that the bank will become unprofitable, if rising interest rates force it to pay relatively more on its deposits than it receives on its loans). Banking crises have developed many times throughout history when one or more risks have emerged for the banking sector as a whole. Prominent examples include the bank run that occurred during
2183-554: The bank's headquarters were relocated to Karachi on August 7, 1947, just before the Partition of India . It was done to facilitate the transfer of Muslim assets to Pakistan, aiding both individual depositors and larger accounts. The bank played a crucial role in the economic framework of newly independent Pakistan. The Habib family owned and managed the bank until the Pakistan government nationalised it on 1 January 1974. The Habib family received compensation of PKR 36.31 per share from
2242-667: The bank, and collecting cheques deposited to customers' current accounts. Banks also enable customer payments via other payment methods such as Automated Clearing House (ACH), Wire transfers or telegraphic transfer , EFTPOS , and automated teller machines (ATMs). Banks borrow money by accepting funds deposited on current accounts, by accepting term deposits , and by issuing debt securities such as banknotes and bonds . Banks lend money by making advances to customers on current accounts, by making installment loans , and by investing in marketable debt securities and other forms of money lending. Banks provide different payment services, and
2301-456: The banker, who is bound to return an equivalent, by paying a similar sum to that deposited with him, when he is asked for it. The goldsmith paid interest on deposits. Since the promissory notes were payable on demand, and the advances (loans) to the goldsmith's customers were repayable over a longer time-period, this was an early form of fractional reserve banking . The promissory notes developed into an assignable instrument which could circulate as
2360-704: The beginning of the 19th century Lubbock's Bank had established a bankers' clearing house in London to allow multiple banks to clear transactions. The Rothschilds pioneered international finance on a large scale, financing the purchase of shares in the Suez canal for the British government in 1875. The word bank was taken into Middle English from Middle French banque , from Old Italian banco , meaning "table", from Old High German banc, bank "bench, counter". Benches were used as makeshift desks or exchange counters during
2419-515: The business of banking for the purposes of the legislation, and not necessarily in general. In particular, most of the definitions are from legislation that has the purpose of regulating and supervising banks rather than regulating the actual business of banking. However, in many cases, the statutory definition closely mirrors the common law one. Examples of statutory definitions: Since the advent of EFTPOS (Electronic Funds Transfer at Point Of Sale), direct credit, direct debit and internet banking ,
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2478-533: The capital of the issuing bank falls below a certain level. Then debt is reduced and bank capitalisation gets a boost. Owing to their capacity to absorb losses, CoCos have the potential to satisfy regulatory capital requirement. The economic functions of banks include: Banks are susceptible to many forms of risk which have triggered occasional systemic crises. These include liquidity risk (where many depositors may request withdrawals in excess of available funds), credit risk (the chance that those who owe money to
2537-483: The cheque has lost its primacy in most banking systems as a payment instrument. This has led legal theorists to suggest that the cheque based definition should be broadened to include financial institutions that conduct current accounts for customers and enable customers to pay and be paid by third parties, even if they do not pay and collect cheques . Banks act as payment agents by conducting checking or current accounts for customers, paying cheques drawn by customers in
2596-423: The cross-selling of complementary products. Banks face a number of risks in order to conduct their business, and how well these risks are managed and understood is a key driver behind profitability, and how much capital a bank is required to hold. Bank capital consists principally of equity , retained earnings and subordinated debt . Some of the main risks faced by banks include: The capital requirement
2655-408: The customer's order – although money lending, by itself, is generally not included in the definition. Unlike most other regulated industries, the regulator is typically also a participant in the market, being either publicly or privately governed central bank . Central banks also typically have a monopoly on the business of issuing banknotes . However, in some countries, this is not the case. In
2714-459: The early retirement of Nauman K. Dar on 31 December 2017, after the bank was marred by a penalty of $ 225 Million (USD) for its non-compliance with risk management and anti-money laundering rules. In 2020, HBL was designated one of the domestic systemically important banks (D-SIB) of the year by the State Bank of Pakistan . In the 1950s, HBL started its international expansion. In 1951, it opened
2773-511: The fine was not larger than $ 225 million. The penalty, however, is the largest ever imposed upon a Pakistani financial institution. HBL had already agreed to surrender its licence to operate a branch in New York that had been operational since 1978. The DFS had earlier sought up to $ 630m in penalties from HBL for failing to comply with state and federal laws at its only U.S. branch. According to The Nation , compliance issues dated back to 2015 when
2832-658: The first three branches in Sri Lanka . The following year, HBL established Habib Bank (Overseas). Then, in 1956, HBL opened the first of five branches in Kenya . In September 2017, HBL agreed to pay a fine of $ 225 million in an out-of-court settlement with the New York State Department of Financial Services (DFS) against 53 separate violations allegedly committed between 2007 and 2017. Following this, HBL shares surged 5 percent, to ₨.160.58 per share, amid investor relief that
2891-589: The funding of these loans, in order to ensure that the banks can meet demands for payment of such deposits. These reserves can be acquired through the acceptance of new deposits, sale of other assets, or borrowing from other banks including the central bank. Activities undertaken by banks include personal banking , corporate banking , investment banking , private banking , transaction banking , insurance , consumer finance , trade finance and other related. Banks offer many different channels to access their banking and other services: A bank can generate revenue in
2950-407: The goldsmiths issued receipts certifying the quantity and purity of the metal they held as a bailee ; these receipts could not be assigned, only the original depositor could collect the stored goods. Gradually the goldsmiths began to lend money out on behalf of the depositor , and promissory notes , which evolved into banknotes, were issued for money deposited as a loan to the goldsmith. Thus, by
3009-442: The issue of a bank license vary between jurisdictions but typically include: Banks' activities can be divided into: Most banks are profit-making, private enterprises. However, some are owned by the government, or are non-profit organisations . The United States banking industry is one of the most heavily regulated and guarded in the world, with multiple specialised and focused regulators. All banks with FDIC-insured deposits have
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#17328762969753068-409: The largest 1,000 banks in the world grew by 6.8% in the 2008–2009 financial year to a record US$ 96.4 trillion while profits declined by 85% to US$ 115 billion. Growth in assets in adverse market conditions was largely a result of recapitalisation. EU banks held the largest share of the total, 56% in 2008–2009, down from 61% in the previous year. Asian banks' share increased from 12% to 14% during
3127-450: The legal basis for bank transactions such as cheques does not depend on how the bank is structured or regulated. The business of banking is in many common law countries not defined by statute but by common law, the definition above. In other English common law jurisdictions there are statutory definitions of the business of banking or banking business . When looking at these definitions it is important to keep in mind that they are defining
3186-455: The past 20 years, American banks have taken many measures to ensure that they remain profitable while responding to increasingly changing market conditions. This helps in making a profit and facilitates economic development as a whole. Recently, as banks have been faced with pressure from fintechs, new and additional business models have been suggested such as freemium, monetisation of data, white-labeling of banking and payment applications, or
3245-482: The person who committed such an act of international terrorism". The plaintiff claimed that between 2010 and 2019, the bank had aided and abetted Al-Qaeda terrorism and had participated in a conspiracy to launch attacks in Afghanistan that killed or injured 370 people. In response, HBL released a statement claiming the accusations were "meritless" and that the bank was fiercely and thoroughly contesting them. HBL
3304-459: The year, while the share of US banks increased from 11% to 13%. Fee revenue generated by global investment in banking totalled US$ 66.3 billion in 2009, up 12% on the previous year. The United States has the most banks in the world in terms of institutions (5,330 as of 2015) and possibly branches (81,607 as of 2015). This is an indicator of the geography and regulatory structure of the US, resulting in
3363-639: Was established as a public limited company in Bombay in 1941 by the Habib family , previously engaged in internal trade and private banking . The bank's founding was influenced by the revitalization of Muslim politics by Muhammad Ali Jinnah in 1936, prompting the Habibs to challenge the existing Hindu-British dominance in the banking industry . Supported by Jinnah and the All India Muslim League , Habib Bank aided
3422-564: Was named in FinCEN leak, published by Buzzfeed News and the International Consortium of Investigative Journalists (ICIJ). It had one suspicious transaction flagged. HBL got State Bank of Pakistan approval to inject Rs500mn in its wholly owned subsidiary namely HBL Asset Management Limited. In 2024, HBL announced an equity investment of 6 billion Pakistani rupees in its subsidiary HBL Microfinance Bank . HBL has also served as
3481-535: Was subject to US sanctions. Since Habib's New York operations were used to clear dollar-denominated transactions, the bank is required to follow US "know your customer" rules and sanctions law. On 28 September 2022, a New York district court passed an order under the Justice Against Sponsors of Terrorism Act placing secondary liability on Habib Bank Limited as a party that "aids and abets, by knowingly providing substantial assistance, or who conspires with
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