ARTICLE

RELATIONSHIP BETWEEN RISK DETERMINANTS AND BANKS PROFITABILITY EMPIRICAL EVIDENCE FROM PAKISTAN

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10 Pages : 112-123

http://dx.doi.org/10.31703/ger.2022(VII-II).10      10.31703/ger.2022(VII-II).10      Published : Jun 2022

Relationship between Risk Determinants and Banks' Profitability: Empirical Evidence from Pakistan

Abstract

    This paper investigates the response of banks towards their performance in terms of their internal and external risk appetite. The statistics of Government Banks, Commercial banks, Islamic banks, and Islamic-Commercial Banks in Pakistan from 2010-2020 are measured. This study measures the risk-taking of Banks in Pakistan. There are many factors to be considered for the profitability of any business, some are internal factors, and some are external. This paper contributes to the ongoing discussion on the effects of deregulation and liberalization on the performance of the banking sector by examining the relationship between bank performance and efficiency indicators. Meanwhile, the paper makes several attempts to add to the existing literature. I will betaking 4 independent "Inflation, Loan Loss Provision (LLP), Gross Domestic Product (GDP) and Lending rates of interest (LIR)" and 1dependent variable, "Return on Average Equity", for this study. Examining these specific factors in greater depth can aid in comprehending their impact on banking institution profitability.

    Bank, Loan Loss Provision (LLP), Gross Domestic Product (GDP), Inflation (INF), Lending Interest Rates (LIR) and Return on Average Equity (ROAE)

    (1) Syed Aziz Rasool
    Shaheed Zulfikar Ali Bhutto Institute of Science And Technology, Islamabad, Pakistan.
    (2) Muhammad Ali Khan
    Shaheed Zulfikar Ali Bhutto Institute of Science and Technology, Islamabad, Pakistan.
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Cite this article

APA

    APA : Rasool, S. A., & Khan, M. A. (2022). Relationship between Risk Determinants and Banks' Profitability: Empirical Evidence from Pakistan. Global Economics Review, VII(II), 112-123. https://doi.org/10.31703/ger.2022(VII-II).10

CHICAGO

    CHICAGO : Rasool, Syed Aziz, and Muhammad Ali Khan. 2022. "Relationship between Risk Determinants and Banks' Profitability: Empirical Evidence from Pakistan." Global Economics Review, VII (II): 112-123 doi: 10.31703/ger.2022(VII-II).10

HARVARD

    HARVARD : RASOOL, S. A. & KHAN, M. A. 2022. Relationship between Risk Determinants and Banks' Profitability: Empirical Evidence from Pakistan. Global Economics Review, VII, 112-123.

MHRA

    MHRA : Rasool, Syed Aziz, and Muhammad Ali Khan. 2022. "Relationship between Risk Determinants and Banks' Profitability: Empirical Evidence from Pakistan." Global Economics Review, VII: 112-123

MLA

    MLA : Rasool, Syed Aziz, and Muhammad Ali Khan. "Relationship between Risk Determinants and Banks' Profitability: Empirical Evidence from Pakistan." Global Economics Review, VII.II (2022): 112-123 Print.

OXFORD

    OXFORD : Rasool, Syed Aziz and Khan, Muhammad Ali (2022), "Relationship between Risk Determinants and Banks' Profitability: Empirical Evidence from Pakistan", Global Economics Review, VII (II), 112-123

TURABIAN

    TURABIAN : Rasool, Syed Aziz, and Muhammad Ali Khan. "Relationship between Risk Determinants and Banks' Profitability: Empirical Evidence from Pakistan." Global Economics Review VII, no. II (2022): 112-123. https://doi.org/10.31703/ger.2022(VII-II).10