Money Market overview
The Money Market desk is responsible for managing the liquidity position of the Bank. It is one of most active money market desks in the industry and actively participates in both primary and secondary markets. Its main functions include:
- Managing the daily liquidity position and meeting SBP regulatory requirements like CRR and SLR.
- Borrowing and lending in the interbank market based on future market outlook and cash flow projections.
- Managing the banks portfolio and investments in PIBs, TBills TFCs etc.
Products and Services
The KASB Bank money market desk provides its customers with a variety of advisory and investment services. We offer our customers competitive quotes and investment advice based on their specific needs. We also allow our customers to invest in Government securities by opening an IPS (Investor Portfolio Services) account on their behalf with the State Bank of Pakistan.
The main types of Government securities that our customers can invest in are:
Treasury Bills (T-Bills)
Treasury bills are zero coupon instruments issued by the Government of Pakistan and sold through the State Bank of Pakistan via fortnightly auctions.
T-Bills are issued with maturities of 3-months, 6-months and 1 Year and are priced at a discount. T-Bills are risk free, SLR eligible securities, that are actively traded in the secondary market and are therefore highly liquid.
They are issued with a minimum denomination of Rs.100, 000.
Pakistan Investment Bonds (PIBS)
PIBs are long term bonds issued by the Government of Pakistan and sold through the State Bank of Pakistan via periodic auctions.
PIBs are issued with tenors of 3, 5, 7, 10, 15, 20 and 30 Years. Being backed by the Government of Pakistan, they present a low risk long term investment option.
The Pakistan Investment Bonds offer a fixed semi annual coupon and repayment of principal at maturity. They are highly liquid SLR eligible securities that are actively traded in the secondary market.
The minimum denomination of PIBs is Rs.100, 000.