S.no.
Name of Paper
Authors Name
Journal Name
Year
of
Public
ation
Model/Technique
Data
Period/Type
Dependent
Variable
Results
1
The Banking Sector
of Pakistan: The
Case of Its Growth
and Impact on
Revenue
Generation
Sana Arz Bhutto
Department of
Education and
Social Sciences,
Hamdard
University,
Pakistan
2007 –
2012
Historical evidences
are provided to
study the
developments in the
banking sector of
Pakistan
1974 to 2010
annual data
Phases of
Banking in
Pakistan
The banking sector of
Pakistan played an
important role in the growth
and development of the
economy of Pakistan. This
study aims to find the
reasons behind the growth
of the banking sector and
how it can influence the
revenue generation of the
sector. The reasons are
investigated and the
current state of the banking
sector is also reviewed to
study the growth patterns.
The historical evidence is
first collected and then
analyzed, so the current
survival of the sector could
be studied even after the
Global Financial Crisis.
Financial Soundness
Indicators provide further
in-depth analyses of the
factors which contributed
towards the growth of the
banking sector of Pakistan.
The reforms in the banking
sector which are the real
reasons for the growth in
the banking sector are
summarized under the
rationale behind growth in
the banking sector of
Pakistan. The banking
sector of Pakistan is the
only sector of the economy
which survived the Global
Financial Crisis. So, this
study provides evidence
that Pakistan’s banking
sector is still resilient and is
profitable which suggests
that it’s still a healthy sector
for the investors to make
safe investments with
reliable and consistent
returns. The government
and the common man both
can be benefited by the
positive performance of the
banking sector of Pakistan.
2
Comparison of
Impact of
Macroeconomic &
Bank-Specific
Variables on
Pakistan’s Islamic
& Conventional
Banks’ Profitability
Muhammad
Assadullah
Mehboob Moosa
Masood Hassan
Research
Journal of
Islamic Studies
2007-
2013
Fixed Effect Model –
Islamic Banks
2009-2018
annual data
over the
period
Return On
Assets
(a) GDP:
GDP is an abbreviation of
Gross Domestic Product.
The researcher will take
annual growth for GDP as
an independent variable. It
shows that the marginal
change in the production of
services and products per
year. It is observed that if
GDP increases, then
profitability of the
financial institutions will
be increased
and vice versa. The
growth in GDP will lead
to increase in production
which
enhances the revenue of
organizations and
individuals.
(b) Inflation:
CPI index will be taken as a
proxy of Inflation, which
indicates the rise or decline
in price every year by using
base year.
(c) Liquidity:
Liquidity risk measures the
availability of cash and
liquid assets which can be
rapidly transfer into cash.
In many previous studies,
the researchers have used
liquidity to determine its
impact on profitability.
(d) Size:
Size refers to the total
number of assets for any
firm. It is postulated that
increase
in size will lead to increase
in profit of any firm.
(e) Capital Adequacy:
The ratio of equity to total
assets (CA) describes the
strength of any
organization.
Stability of financial
institutions depends upon
an effective capital
structure like. 18 19 20
3
Financial sector
liberalization, bank
privatization, and
efficiency:
Evidence from
Pakistan
Daniel C. Hardy
Journal of
banking and
finance
2005
Bank productivity
and relative
efficiency
2005 -2015
annual data
privatization
of public-
sector banks
The Pakistani banking
system has been
transformed over the past
15 years through
liberalization, the entry of
private banks, the
privatization of public-
sector banks, and the
tightening of prudential
regulations. The effects of
these changes on bank
productivity and relative
efficiency are investigated
using various techniques.
Bank productivity in terms
of profits has increased, and
new entrants have been
efficient, but the dispersion
of efficiency remains wide.
The privatized banks
improved their profit
efficiency in the period
immediately following their
privatization, but in the
subsequent years only one
significantly improved its
efficiency, whereas the
other did not differentiate
itself in terms of efficiency
from the remaining state-
owned banks. The new
private domestic banks
generally proved to be
among the most efficient,
and sometimes out-
performed the foreign
banks.
4
Exploring the
nexus between
financial sector
reforms and the
emergence of
digital banking
culture
Aijaz A.Shaikh
Richard Glavee-
Geo
Heikki Karjaluoto
Research in
International
Business and
Finance
2016-
2017
Evidences from a
developing country
2000-2017
Annual data
Economy
level
Several financial and
banking sector reform
programs were instituted in
different countries over the
last three decades. The
underlining purpose of
these reforms was largely
to improve banking sector
supervision and regulation,
introduce bank
privatization mechanism,
introduce clearance and
settlement systems, infuse
competition and to
stimulate financial
innovation. The objectives
of this study are to 1)
review the relevant
published literature and
market survey reports on
the financial & banking
sector reforms undertaken
in Pakistan and elsewhere,
2) analyze how these
reform programs develop
digital banking culture and
increase financial inclusion
in the country and 3) guide
future research by putting
forward a research
agenda. The findings of
the study suggest a link
between the financial and
banking sector reforms
and the stimulation of
financial innovation; the
promotion of digital
banking culture; and the
infusion of financial
inclusion in Pakistan. We
discuss managerial/policy
implications of the study,
limitations and presents
recommendations for
future research, This
paper begins with a debate
on global financial crises
and how the financial
sector
reforms were initiated
(Section-2). Thereafter, led
the authors conveniently to
the major
research question of how
the financial sector reforms
were instituted in Pakistan
(Section 3).
Next the authors provide a
detailed status of digital
banking, branchless
banking and financial
inclusion in Pakistan
before and after the
reforms program (Section
4). Final section (Section
5) summarizes and
concludes with a
discussion on the primary
contributions of this
research
as well as the theoretical
and managerial
implications, and
limitations that warrant
additional
investigation
5
Impact of external
factors on bank
profitability
Muhammad
Farhan Basheer
International
Journal of
Research in
Marketing
2003-
2013
Bank Expense and
Bank Fixed Asset
2018 annual
data
Profitability
The study endeavors to
shed light on the indicators
of profitability for the
banking system of Pakistan
by taking into consideration
Bank-Specific and
Macroeconomic Factors.
This study reveals an
efficient image of the
profitability on banking
sector of Pakistan for the
period 2003-2013. The
effect of macroeconomic
(predictors), four appeared