| GEO Business|
| SBP report on financial stability issued|
| Updated at: 1139 PST, Wednesday, December 31, 2008|
KARACHI: State Bank of Pakistan (SBP) has issued its annual report on financial stability, which said that stock markets index ‘floor’ discouraged investment in the country.
Financial stability report for 2007-08 said that the KSE-100 index at 9,144 points put on ‘floor’ negatively impacted the investment in the country. Besides, the second phase of the global crisis fallouts were also hitting the economy. The report further said that the financial sector during the last 18 months sustained many jolts, which showed that the country’s banking system was sound and stable. By the end of 2007, economic malaise had started surfacing, but the net inactive loans aggregated to only 1.3 percent of the total loans and in case of any default surplus fund against the loans have been kept secured.