Determining the Factors of Profitability in Islamic and Conventional Banks Of Pakistan

Banks plays vital role in capitalist economy. During the period of financial turmoil, it has been viewed that banks lost a huge capital due to non-recovery of loans from customers. Since there are two type of banks working in Pakistan therefore this thesis analyse which banks performance was better...

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Main Author: Mahmood Ali
Format: Article
Language:English
Published: Seisense 2018-03-01
Series:SEISENSE Journal of Management
Subjects:
Online Access:https://journal.seisense.com/jom/article/view/1
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author Mahmood Ali
author_facet Mahmood Ali
author_sort Mahmood Ali
collection DOAJ
description Banks plays vital role in capitalist economy. During the period of financial turmoil, it has been viewed that banks lost a huge capital due to non-recovery of loans from customers. Since there are two type of banks working in Pakistan therefore this thesis analyse which banks performance was better during the financial crunch between 2008 - 2012. The objective of this thesis is to determine the factor affecting the profitability of Islamic and Conventional banks in Pakistan during the period 2008 – 2012. Data was collected through financial books of seventeen conventional and five Islamic banks. Two dependent variables i.e. Return on Asset and Return on Equity were used to determine the profitability of Islamic and conventional banks in Pakistan. Whereas Liquidity, Credit Risk, Capitalization, Efficiency, Bank Size, Economic Performance, Inflation and a dummy variable were used as Independent variables. Panel Data analysis is used to find out the result of secondary data. Initially the analysis was conducted on whole industry, which then applied on Islamic and Conventional banks separately.
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spelling doaj-art-e5f46a26efd14a3b8521c3bf4b0dc4702025-08-20T02:00:41ZengSeisenseSEISENSE Journal of Management2617-57702018-03-011110.5281/zenodo.1218186Determining the Factors of Profitability in Islamic and Conventional Banks Of PakistanMahmood Ali0University of Education Banks plays vital role in capitalist economy. During the period of financial turmoil, it has been viewed that banks lost a huge capital due to non-recovery of loans from customers. Since there are two type of banks working in Pakistan therefore this thesis analyse which banks performance was better during the financial crunch between 2008 - 2012. The objective of this thesis is to determine the factor affecting the profitability of Islamic and Conventional banks in Pakistan during the period 2008 – 2012. Data was collected through financial books of seventeen conventional and five Islamic banks. Two dependent variables i.e. Return on Asset and Return on Equity were used to determine the profitability of Islamic and conventional banks in Pakistan. Whereas Liquidity, Credit Risk, Capitalization, Efficiency, Bank Size, Economic Performance, Inflation and a dummy variable were used as Independent variables. Panel Data analysis is used to find out the result of secondary data. Initially the analysis was conducted on whole industry, which then applied on Islamic and Conventional banks separately. https://journal.seisense.com/jom/article/view/1BankingProfitabilityPakistan
spellingShingle Mahmood Ali
Determining the Factors of Profitability in Islamic and Conventional Banks Of Pakistan
SEISENSE Journal of Management
Banking
Profitability
Pakistan
title Determining the Factors of Profitability in Islamic and Conventional Banks Of Pakistan
title_full Determining the Factors of Profitability in Islamic and Conventional Banks Of Pakistan
title_fullStr Determining the Factors of Profitability in Islamic and Conventional Banks Of Pakistan
title_full_unstemmed Determining the Factors of Profitability in Islamic and Conventional Banks Of Pakistan
title_short Determining the Factors of Profitability in Islamic and Conventional Banks Of Pakistan
title_sort determining the factors of profitability in islamic and conventional banks of pakistan
topic Banking
Profitability
Pakistan
url https://journal.seisense.com/jom/article/view/1
work_keys_str_mv AT mahmoodali determiningthefactorsofprofitabilityinislamicandconventionalbanksofpakistan