DOES THE LOAN LOSS PROVISION AFFECT THE BANKING PROFITABILITY IN CASE OF PAKISTAN?
Journal Title: Asian Economic and Financial Review - Year 2012, Vol 2, Issue 7
Abstract
This paper examines the impact of loan loss provisions of the banks on the performance of the banks operating in Pakistan. Moreover the other factors that affect the banking profitability have been discussed in this study. Our results show that the loan loss provision of the banks is of paramount importance in affecting its profitability. A well-managed bank is perceived to be of lower loan loss provision and such an advantage will be translated into higher profitability. In addition, banks advances and deposits which represent the vital role for the determination of banking profitability. Finally, with regard to non financial variable, political instability in the previous period has more significant effect on the present banks profitability rather than the political instability at present period.
Authors and Affiliations
Ahmed Raza ul Mustafa| Ph.D Scholer, Department of Economics, University of Karachi, Karachi, Riaz Hussain Ansari| Lecturer, Department of Business Administration, B.Z University, Sahiwal Campus, Muhammad Umair Younis| Post Graduate Student, Department of Business Administration, B.Z University, Sahiwal Campus
Keywords
Related Articles
- EP ID EP1827
- DOI -
- Views 529
- Downloads 45
TICK SIZE AND COMMONALITY IN LIQUIDITY
This study suggests that the change of tick size, particularly in a step-function tick system, accounts for cross-sectional variation in market liquidity. We explored the relative significance of commonality in liquidity...
FACTORS INFLUENCING SUCCESSFUL BRAND EXTENSION INTO RELATED AND UNRELATED PRODUCT CATEGORIES
This study describes the study that analyzes the factors influencing successful brand extension. Specifically the study analyze the impact of similarity, brand reputation, perceived risk and consumer innovativeness on th...
IMPACT OF POLITICAL INSTABILITY AND FOREIGN DIRECT INVESTMENT ON ECONOMIC DEVELOPMENT IN PAKISTAN
According to economists, political instability is harmful for economic development of any Country. Pakistan is also facing the problem of political instability, since political instability causes a decrease in investment...
CAUSALITY ANALYSIS OF VOLATILITY IN EXCHANGE RATE AND STOCK MARKET PRICES: A CASE STUDY OF PAKISTAN
This study attempted to investigate the direction of causation between the volatilities of exchange rate and stock market prices in Pakistan. Monthly time series data of Karachi Stock Exchange prices (KSE-100 Index) and...
DETERMINANTS OF NON-PERFORMING LOANS IN LICENSED COMMERCIAL BANKS: EVIDENCE FROM SRI LANKA
This study investigates the determinant factors of ex-post credit risk considering non-performing loans (NPLs) as proxy variable in Sri Lanka?s commercial banking sector and is carried out with a sample of nine licensed...