2018
DOI: 10.33094/8.2017.2018.21.1.7
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Interest Rate and Financial Performance of Banks in Pakistan

Abstract: The efficiency of banking sector is considered most important for the economic growth, monetary policy implementation and macroeconomic stability. The objective of this study is to evaluate the impact of interest rate fluctuations on the profitability of banks. Thus, annual data of seven years from 2007 to 2014 has been taken for 20 banks operating in Pakistan. The sample banks are taken on the basis of highest market share and return. To make substantially noteworthy results study uses Correlation and Regress… Show more

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Cited by 46 publications
(57 citation statements)
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“…As illustrated in figure 1 below: But, the decline in ROA performance is not in line with the performance of loans provided by conventional banks. This is not in accordance with the theory and results of previous studies where the increase in credit provided by bank should be directly proportional to the bank's profitability (Ahmed et al 2018). It is different from the conditions that occur, although bank's profitability in 2012 and 2017 shows a decline but the credit provided by banks in Indonesia continues to increase.…”
Section: Introductioncontrasting
confidence: 95%
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“…As illustrated in figure 1 below: But, the decline in ROA performance is not in line with the performance of loans provided by conventional banks. This is not in accordance with the theory and results of previous studies where the increase in credit provided by bank should be directly proportional to the bank's profitability (Ahmed et al 2018). It is different from the conditions that occur, although bank's profitability in 2012 and 2017 shows a decline but the credit provided by banks in Indonesia continues to increase.…”
Section: Introductioncontrasting
confidence: 95%
“…It means that the more reference interest rates set by Bank Indonesia have an impact on increasing the profitability of BUKU 1 and BUKU 2 banks. In line with previous research where an increase in the BI rate has a positive effect on bank's profitability(Ahmed et al 2018). However, the increase in LDR and BUKU 1 and BUKU 2 bank interest rates is mediated by the inefficiency of bank operations.…”
supporting
confidence: 91%
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“…However majority of researches tend to focus only on single type of innovation or the most two types of innovation which are process and product innovations. There are also studies on green innovation adoption and its effect on firm performance which has sparked interest among Malaysian researchers (Zailani et al, 2015;Habidin et al, 2016;Nze, Ogwude et al, 2016;Hang et al, 2016;Owusu-Antwi et al, 2017;Ahmed et al, 2018).…”
Section: Fig 2 Research Framework and Hypothesismentioning
confidence: 99%