Abstract:
Whether the development in banking industry supports Pakistan economic growth or not, is critical question empirically. Thus, this is a fundamental research aimed to examine the role of some banking trend indicators on gross domestic product using annual data statistics of commercial banks from the period of 2018 to 2022. Data was collected from annual reports of 5 commercial banks of Pakistan and analyzed using regression, correlation and descriptive analysis. Five commercial banks including Allied Bank, Bank Alfalah, Faysal Bank, MCB Bank and Meezan Bank were selected for the said reason. Gross Domestic Product (GDP) was used as a proxy to measure the financial performance of banking industry. Independent variables are spread ratio, net markup, return on asset, return on equity, non-markup, interest income to total asset, interest expense to markup, admin expense to non-markup, interest expense to total income, admin expense to non-markup, earning per share, cash equivalent to total asset, investment to total asset, advances net of provision to total asset. Multiple regression model was used to compare this financial performance. Coefficient of determination shows that there is a positive relationship between role of commercial banks and economic growth of the country.
Page(s):
344-344
DOI:
DOI not available
Published:
Journal: Abstract Book on International Conference on Food and Applied Sciences (ICFAS-23) 3-5 August 23, Volume: 0, Issue: 0, Year: 2023
Keywords:
Economic development
,
Commercial Banks
,
Financial Performance
,
Gross Domestic