This paper illustrates one of the biggest financial scams in the banking history of Pakistan, the fraud at Banker’s Equity Limited (BEL). It shows how senior management at BEL misused their powers and financial purview to divert public funds to personal benefits in collusion with private stock exchange brokers and other senior officials of BEL by making bogus entries and fake transactions in BEL record.

The purpose of this study is to provide an understanding of what financial misappropriation is and how serious its consequences can be in today’s business world. A minor but related objective is to appreciate that custodians of state financial institutions hold public investment through a sacred trust and have the duty to behave in an ethical and honest manner. The case study approach is used to present the artifact of one of the biggest financial scams in the banking history of Pakistan.

Banker’s Equity Limited (BEL) was established in 1979 with shareholding by the State Bank of Pakistan, Pakistan Banking Council, and the then five nationalized commercial banks, namely, Habib Bank Ltd., National Bank Ltd., Muslim Commercial Bank Ltd., Allied Bank Ltd., United Bank Ltd. Its major objective was acceleration of the pace of industrial development and expansion of local capital markets.

Corporate Governance Journal, Banker’s Equity Limited, Corporate Governance Failure, Banker’s Equity Limited (BEL), Commercial Banking Circle (CBC), Federal Investigation Agency (FIA) .