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Bank Company Act 1991

By Hafsa Binte Omar

The Banking Company Act 1991, or BCA 1991, was imposed in Pakistan in 1991. It is a comprehensive law that regulates the formation and administration of banks, including those governed by foreign ownership or joint venture. The act provides for the establishment of bank branches outside Pakistan and regulates their activities. It outlines the rights and obligations of shareholders and directors of banks, as well as how banks should manage accounts, deposits and investments, loans and advances, security deposits, foreign exchange operations and other financial instruments.

Table Of Content:
  • Source: Google.
  • Conclusion:
    In summary, The Banking Company Act 1991 established a comprehensive framework that governs all aspects involved in forming and administrating banks including those formed through joint venture or foreign ownership. It outlines specific rules on what legal activities a bank can undertake alongside Corporate Governance Responsibilities which need to be followed while also detailing State Bank's role in relation to Foreign Ownership & Joint Ventures set up under this act.


    Hafsa Binte Omar

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