Impact of Liquidity on Profitability of Commercial Banks in Pakistan: An Analysis on Banking Sector in Pakistan

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Rizwan Ali Khan
Rizwan Ali Khan
2
Mutahhar Ali
Mutahhar Ali
1 Quaid-i-Azam University, Islamabad

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This study aims at investigating the relationship between liquidity and profitability of commercial banks in Pakistan. The main objective of the study is to find the nature of relationship and the strength of relationship exist between the variables. Correlation and regression are used respectively to find the nature of the relationship and extent of relationship between dependent and independent variables. Secondary data was used for analysis which was extracted from the last five years (2008)(2009)(2010)(2011)(2012)(2013)(2014) annual accounts of Habib Bank Limited. After conducting correlation and regression analysis it was found that there as significant positive relationship between liquidity with profitability of the banks. Since, the data of the banking sector was used, hence the results cannot be generalized to other sectors.

Funding

No external funding was declared for this work.

Conflict of Interest

The authors declare no conflict of interest.

Ethical Approval

No ethics committee approval was required for this article type.

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Not applicable for this article.

Rizwan Ali Khan. 2016. \u201cImpact of Liquidity on Profitability of Commercial Banks in Pakistan: An Analysis on Banking Sector in Pakistan\u201d. Global Journal of Management and Business Research - C: Finance GJMBR-C Volume 16 (GJMBR Volume 16 Issue C1): .

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Issue Cover
GJMBR Volume 16 Issue C1
Pg. 53- 59
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Crossref Journal DOI 10.17406/GJMBR

Print ISSN 0975-5853

e-ISSN 2249-4588

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GJMBR-C Classification: JEL Code: G21
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v1.2

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February 9, 2016

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English

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This study aims at investigating the relationship between liquidity and profitability of commercial banks in Pakistan. The main objective of the study is to find the nature of relationship and the strength of relationship exist between the variables. Correlation and regression are used respectively to find the nature of the relationship and extent of relationship between dependent and independent variables. Secondary data was used for analysis which was extracted from the last five years (2008)(2009)(2010)(2011)(2012)(2013)(2014) annual accounts of Habib Bank Limited. After conducting correlation and regression analysis it was found that there as significant positive relationship between liquidity with profitability of the banks. Since, the data of the banking sector was used, hence the results cannot be generalized to other sectors.

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Impact of Liquidity on Profitability of Commercial Banks in Pakistan: An Analysis on Banking Sector in Pakistan

Rizwan Ali Khan
Rizwan Ali Khan Quaid-i-Azam University, Islamabad
Mutahhar Ali
Mutahhar Ali

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