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 561
- Downloads 45
ARE ISLAMIC BANKS MORE RESILIENT TO GLOBAL FINANCIAL CRISIS THAN CONVENTIONAL BANKS?
Development of global finance in recent years is marketed with the fastest growth in Islamic finance. The recent global financial crisis is characterized by the failure of a number of conventional banks. This led many re...
A STUDY ON TAIWAN’S BOND MARKET INTEGRITY AND MARKET TIMING ABILITY - BASED ON THE ARMAX-GARCH MODEL
Due to the market’s integrity and lack of liquidity of Taiwan’s bond market, a bond manager finds it difficult to flexibly adjust portfolio allocation and systemic risk. No matter in the T-M model, T-M ARMAX-GARCH model,...
EFFECTS OF FOCUS OF ACCOUNTING RESEARCH ON THE QUALITY OF ACCOUNTING EDUCATION IN MALAYSIAN UNIVERSITIES
This paper reviews the impact of focus of research in accounting on the quality of accounting education in Malaysian Universities. Research in accounting is very important in Malaysian Universities, in particular, and t...
THE TREND ANALYSIS OF ISLAMIZATION IN MALAYSIA USING ISLAMIZATION INDEX AS INDICATOR
This paper empirically analyses the trend of Islamization in Malaysia using the Islamization Index as an indicator to determine whether the time series dataset of the Islamization index possess deterministic trends or st...
THE DISTRIBUTION OF THE RETURNS OF JAPANESE STOCKS AND PORTFOLIOS
The behaviour of the distribution of stock returns is of fundamental importance in financial economics, in view of its direct bearing on the descriptive validity of any theoretical model. We analysed the behaviour of Jap...