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Deposit Insurance In Pakistan,

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   Khan
Monday, October 20, 2008 07:40 PM 
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Are deposits in Pak bank insured? In USA, bank deposits are insured up to $100K now up to $250K. Are there similar insurance provided by the government for deposits in government and private banks in Pakistan?
Rehman replied on Tuesday, October 21, 2008 05:56 AM 

There is no deposit insurance scheme in Pakistna either by the GOP or the banks. In USA , it is FDIC and in canada, CDIC provides such cover
Habib replied on Tuesday, October 21, 2008 08:26 AM 

In National saving schemes and National Bank of Pakistan deposits are 100% Guranteed. In BCCI Flop [it was international Bank] in Mid 80s Pakistani investors who had invested in Pak based deposits [not off shore] got full money Back 100%, But 2nd home for this Bank was UAE but you may be surprised in UAE many people were not paid. Or paid very small amount after 15 to 20 ys. Although Bank's name was changed to Union national bank which is still working.
ua replied on Tuesday, October 21, 2008 09:30 AM 

Adding to Mr. Habib's comment. in case of failure of Mehran Bank, no depositor lost anything. National Bank took it over after its failure.

Problem happened in case of Co-operative scandal of early 90s but they were unregulated and not under State Bank regulatory control. Even though it was a unregulated show, Government of Pakistan still paid up the small account holders in full...
rehman replied on Tuesday, October 21, 2008 10:17 AM 

Just to clarify the record, when BCCI collapsed, people in Pakistna got thier money after 2- 3years. Both in Paistan nad UAE, bank assets were sold. In UAE, it became Union National Bank and in Pakistan, sold to Habib Bank, It got some other name. Therefore, it was wrong to assume that only bank's name was changed.
However, in all the cases, the deposits are not insured. The Govt. of Pakistan discretion is there whether in case of collapse, they Guarantee the deposits or not. In recent failure of Crescent Investment Bank, Depsoits were not guaranteed and people were not able to withdraw any amount till the bnak was sold to SAMBA, KSA
Khan replied on Tuesday, October 21, 2008 11:57 AM 

Thank you very much to all who has responded.
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