Determinants of Banking Sector Performance in Pakistan

Determinants of Banking Sector Performance in Pakistan

Beenish Ameer BBA(HONS), MS(FINANCE)

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Beenishameer M.Ameer

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Determinants of Banking Sector Performance in Pakistan

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Abstract

The purpose of this research is to examine the relationship between bank-specific and macro-economic indicator over bank performance by using data of ten Pakistani banks including five conventional banks and five Islamic banks over the period 2010-2014. Dependent variable taken for this study is Return on assets, Return on Equity to measure the Banking Sector Performance and independent variable taken for this study including specific factors (Size, Capital, Loan, Deposits, Expenses, Credit Risk and Liquidity) and macroeconomic factors (Gross Domestic Product, Foreign Direct investment and Inflation).This paper uses the correlation and regression method to investigate the impact of size, loans, capital, deposits, liquidity, credit risk, expenses, economic growth, inflation and foreign direct investment on major performance indicators. The empirical results have found strong evidence that both internal and external factors have a strong influence on the performance. A result of study denotes that credit risk, expenses and inflation have indirect link with the bank performance, whereas size of bank, capital, deposit and loan have a significant positive relation with bank’s performance and liquidity have insignificant positive relation with Performance of bank. This study reveals the positive insignificant relation between GDP and performance but significant relation between FDI and performance and indirect relation between inflation and profitability. The results of the study are of value to both academics and policy makers.

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Funding

No external funding was declared for this work.

Conflict of Interest

The authors declare no conflict of interest.

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How to Cite This Article

Beenish Ameer. 2015. \u201cDeterminants of Banking Sector Performance in Pakistan\u201d. Global Journal of Management and Business Research - C: Finance GJMBR-C Volume 15 (GJMBR Volume 15 Issue C6): .

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GJMBR Volume 15 Issue C6
Pg. 21- 48

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Journal Specifications

Crossref Journal DOI 10.17406/GJMBR

Print ISSN 0975-5853

e-ISSN 2249-4588

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GJMBR-C Classification: JEL Code: E59

Submission ReceivedFebruary 11, 2015
Peer Review Double Blind
Handling Editor
Accepted March 5, 2015
Published March 15, 2015

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July 20, 2015

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Article Matrices

Total Score: 131

Country: United Kingdom

Subject: Global Journal of Management and Business Research - C: Finance

Authors: Beenishameer M.Ameer (PhD/Dr. count: 0)

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