The Profitabilityof the Banking Sector of Pakistan
AbstractThe main objective of the study is to examine the determinants of the profitability of the banking sector of Pakistan. The level of bank advances and deposits, the liquidity ratio, and the 'spread' between rate of return on advances and rate of return on deposits, have been selected as the main indicators of the profitability of the banking system. The analysis shows that level of economic activity is the m,~iordeterminant of the profitability of the banking sector. The study finds, somewhat unexpectedly, that the rate of return on advances and the rate of return on depo~its may not be very effective tools to control the financial sector
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Bibliographic InfoPaper provided by Pakistan Institute of Development Economics in its series PIDE-Working Papers with number 1998:162.
Length: 24 pages
Date of creation: 1998
Date of revision:
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