AL-MEEZAN BANK

Presentation By:M.Nauman SherRazaullah khanShiraz KhanAl Meezan Investment Management Limited (Al Meezan) is the largest Shariah compliant asset management company in Pakistan with a solid track record ofover17 yearsof fund management.

Incorporated on 27thFebruary 1995, it is a group company of Meezan Bank Limitedand Pakistan Kuwait Investment Company Private Limited and is currently managing assets ofover Rs.43 Billion.

Al Meezan is registered as a Non Banking Finance Company under the Non Banking Finance Companies (Establishment and Regulation) Rules, 2003 andNBFC Entities Regulations 2007 with the Securities and Exchange Commission of Pakistan (SECP) to carry on the business of asset management and investment advisory.

As an Investment Adviser, Al Meezan is authorized to manage discretionary and non-discretionary portfolios for its clients. It has also been licensed as Pension Fund Manager to manage Voluntary Pension Funds under Voluntary Pension System Rules, 2005. Al Meezan has got Management Quality Rating AM2 assigned by JCR-VIS.

2Monetary Policy(Credit Control)The changes in money supply by the central bank to influence interest rate and achieve some other economic objectives is called monetary policyBank Credit dominant part.Credit is lifeblood of modern business.Too much credit leads to inflation.

Objectives of Credit ControlRegulate money supplyTo increase investmentTo increase employment opportunitiesTo control price level

Methods to control credit(tools of monetary policy)Quantitative Controls

Qualitative ControlsQuantitative ControlsDiscount rate policyRate of interest at which a central bank provides loans to commercial banks.Open Market OperationsSale and purchase of government securities in the open money market by the central bank.Variation in Reserve RequirementChanging the percentage of reserve requirements of member banks.Credit RationingFixing limit up to which central bank can give loans to its member banks.Qualitative ControlsChange in Margin RequirementsChange in margin of loan against security.Moral persuasionAdvising and Guidance to member banks.PublicityCentral bank undertakes publicity about its policies.Direct Action

Monetary Policy Objectives in PakistanThe principal objectives of monetary policy in Pakistan is to:Control InflationMaintaining price stabilityStrong monetary growthAchieving maximum employment rate

Transaction costTransaction cost are fees charged by financial companies in the sales and purchases of securitiesOR A fee charged by a financial intermediary such as a bank, broker or underwriter

Transaction cost (Contd)The transaction costs to buyers and sellers are the payments that banks and brokers receive for their roles in these transactions.There are also transaction costs in buying and selling real estate.These fees include the agent's commission, government fees.

Transaction Cost (example)Consider the prospective purchaser of a refrigerator. The purchase price of the refrigerator that is eventually bought is not the only cost involved. Transaction costs such as the time spent researching the best brand and model, and the cost of travelling to wherever that item is available for purchase increase the real cost of the purchase.Information costCost incurred from completing due diligence which involves the expenses related to the investigation of an investment or financial activity and is necessary to determine profitability.ORCosts incurred in transaction including the analysis and evaluation of the advantages of a financial asset as an investment.

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