Determinants of bank credit in Pakistan: A supply side approach

Imran, Kashif; Nishat, Mohammed

doi:10.1016/j.econmod.2013.07.022

Cited by 54 publications

(79 citation statements)

References 8 publications

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“…This percentage is consistent with what is expected and with what was found by several studies such as Imran and Nishatm (2013), which reported that the economic growth has a positive impact on the bank credit.…”

Section: The Results Of the Regression Analysissupporting

confidence: 82%

“…The ratio of the deposits to the total assets (DEP/TA): the ratio of the deposits to the total assets is considered one of the important factors that affect the volume of the granted credit because the increase of deposits in the bank offers more money that can be lent; this was confirmed by Imran and Nishatm (2013) which found that the high deposits have a positive impact on the rate of growth in the credit provided to the private sector. Olokoyo (2011) indicated that the volume of deposits in banks has a significant impact on the volume of bank lending.…”

Section: Defining the Variables Of The Studysupporting

confidence: 53%

“…The economic growth rate (GRTH): The economic growth is one of the important factors that affect the bank lending because the high growth rates reflect high pace of economic activity in the country and its accompanying rise in demand for funding. Imran and Nishatm (2013) found that the economic growth has a positive effect on the bank credit. The economic growth will be measured by the rate of the annual change in the GDP at constant prices.…”

Section: Defining the Variables Of The Studymentioning

confidence: 99%

“…Based on the previous studies on the determinants of the bank lending especially Imran and Nishatm (2013), Sharma and Gounder (2012), Olokoyo (2011) and Guo and Stepanyan (2011), a group of factors and variables were extracted to develop a standard model record through which we can test the factors affecting the bank credit provided from the commercial banks in Jordan. The independent variables that have been adopted in this study included three main groups which are the internal variables related to the banks, the variables related to the monetary policy and the macroeconomic variables.…”

Section: The Study Modelmentioning

confidence: 99%

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Factors Affecting the Bank Credit: An Empirical Study on the Jordanian Commercial Banks

Rabab’ah¹

2015

IJEF

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This paper aimed to examine the determinants of commercial banks' lending in Jordan. The study sample consisted of ten Jordanian commercial banks during the period 2005-2013. The study used the ratio of credit facilities to total assets as a dependent variable, and eleven independent variables including the ratio of deposits, ratio of non-performing loans, capital ratio, liquidity ratio, asset size, lending rate, deposits rate, window rate, legal reserve ratio, inflation and economic growth rate .The results showed that the ratio of non-performing loans, liquidity ratio and window rate have a negative and significant impact on the ratio of credit facilities, while found that the bank size and the economic growth have a positive and significant impact on the ratio of credit facilities granted by commercial banks in Jordan. The study recommended Jordanian commercial banks to avoid excess liquidity, and to pay more attention to reduce the ratio of non-performing loans.

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Section: The Results Of the Regression Analysissupporting

confidence: 82%

Section: Defining the Variables Of The Studysupporting

confidence: 53%

Section: Defining the Variables Of The Studymentioning

confidence: 99%

Section: The Study Modelmentioning

confidence: 99%

See 2 more Smart Citations

Factors Affecting the Bank Credit: An Empirical Study on the Jordanian Commercial Banks

Rabab’ah¹

2015

IJEF

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“…Banks having a strong deposits base are expected to invest more in risk-weighted assets. Imran and Nishat [45] 4 found that domestic deposits are significant determinants of bank credit in Pakistan. We expect a positive association between Deposits_TA and bank risk proxies.…”

Section: Data and Variablesmentioning

confidence: 99%

Capital Regulation and Bank Risk-Taking Behavior: Evidence from Pakistan

Ashraf

Arshad

Yuan-cheng

2016

IJFS

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Abstract:In response to the global financial crisis of [2007][2008][2009], risk-based capital requirements have been reinforced in the new Basel III Accord to counter excessive bank risk-taking behavior. However, prior theoretical as well as empirical literature that studies the impact of risk-based capital requirements on bank risk-taking behavior is inconclusive. The primary purpose of this paper is to examine the impact of risk-based capital requirements on bank risk-taking behavior, using a panel dataset of 21 listed commercial banks of Pakistan over the period [2005][2006][2007][2008][2009][2010][2011][2012]. Purely regulatory measures of bank capital, capital adequacy ratio, and bank assets portfolio risk, risk-weighted assets to total assets ratio, are used for the main analysis. Recently developed small N panel methods (bias corrected least squares dummy variable (LSDVC) method and system GMM method with instruments collapse option) are used to control for panel fixed effects, dynamic dependent variables, and endogenous independent variables. Overall, the results suggest that commercial banks have reduced assets portfolio risk in response to stringent risk-based capital requirements. Results also confirm that all banks having risk-based capital ratios either lower or higher than the regulatory required limits, have decreased portfolio risk in response to stringent risk-based capital requirements. The results are robust to alternative proxies of bank risk-taking, alternative estimation methods, and alternative samples.

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Effects of information sharing on banking credit and economic growth in developing countries: Evidence from the West African Economic and Monetary Union

Loaba

Zahonogo

2018

Int. J Fin Econ

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This article aims to analyse the information sharing effect on bank credit and economic growth in West African Economic and Monetary Union. A simultaneous model was tested on panel data covering the period of 2005–2015. Using the credit register cover, the results found by the two‐stage least square and three‐stage least square methods indicate that high information sharing does not result in obviously high bank credit and economic growth. However, results also show a nonlinear relationship between information sharing and banking credit and a nonlinear relationship between information sharing and economic growth. The results show the necessity for promoting information sharing structures.

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Determinants of bank credit in Pakistan: A supply side approach

Cited by 54 publications

References 8 publications

Factors Affecting the Bank Credit: An Empirical Study on the Jordanian Commercial Banks

Factors Affecting the Bank Credit: An Empirical Study on the Jordanian Commercial Banks

Capital Regulation and Bank Risk-Taking Behavior: Evidence from Pakistan

Effects of information sharing on banking credit and economic growth in developing countries: Evidence from the West African Economic and Monetary Union

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