Record Details

Bank Specific and Macroeconomic Determinants of Bank Profitability

Journal of Management Info

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Title Bank Specific and Macroeconomic Determinants of Bank Profitability
 
Creator Javaid, Muhammad Ehsan; Lahore Leads University
 
Subject Profitability; Inflation; Random Effect; Hausman
 
Description This study investigated the profitability of the banking sector in Pakistan. It evaluated the effects of both internal (bank-specific) and external (macroeconomic) factors on bank’s profitability from 2006 to 2013 period. The data of 34 commercial banks operating in Pakistan has collected. The data was balanced panel data and analyzed by random effect panel data regression analysis. Results confirmed that bank size and non-interest income had positive significant relationship on banking profitability. Deposit had negative significant relationship with banking profitability because of maintaining high liquidity, which increased cost of holding asset that ultimately, decrease profitability. As major participant, banks of Pakistan banking sector were small size banks so most important factor out of significant factors were income from non-interest facilities provided by these commercial banks. By increasing such facilities increased the bank’s customer base, which ultimately increased bank’s profitability. Macro-economic factors showed no significant effect on bank’s profitability.
 
Publisher Readers insight Publisher
 
Contributor —
 
Date 2016-06-01
 
Type info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
—
 
Format application/pdf
 
Identifier http://jmi.readersinsight.net/index.php/jmi/article/view/46
 
Source Journal Of Management Info; Vol 10, No 1 (2016): Volume 10, Issue 1; 38-54
2313-3376
 
Language eng
 
Relation http://jmi.readersinsight.net/index.php/jmi/article/view/46/pdf_37
 
Rights Copyright (c) 2016 Journal Of Management Info
http://creativecommons.org/licenses/by/4.0