IDEAS home Printed from https://ideas.repec.org/a/rfh/bbejor/v13y2024i2p898-907.html

Empirical Study to Evaluate Financial Fitness of Listed Commercial Banks of Pakistan

Author

Listed:
  • Syeda Ambreen Fatima Bukhari

    (Lecture, Lahore School of Accountancy and Finance, The University of Lahore, Pakistan)

  • Syeda Tabinda Rubab

    (Lahore School of Accountancy and Finance, The University of Lahore, Pakistan)

  • Noor Fatima

    (Lahore School of Accountancy and Finance, The University of Lahore, Pakistan)

  • Asad Ullah

    (Lahore School of Accountancy and Finance, The University of Lahore, Pakistan)

  • Muhammad Faiz Madhi

    (Lahore School of Accountancy and Finance, University of Lahore, Pakistan)

Abstract

The main purpose of this research is to find the effect of financial fraud, bank size, liquidity, solvency, and efficiency on the financial performance of selected Pakistani commercial banking sector. This research is conducted for assessing the financial stability of the commercial Banking sector of Pakistan. In this research, the ratio analysis technique is adopted for investigating the financial performance of the Banking Sector for the period 2012 to 2018. This study found that bank size, financial fraud, efficiency, solvency and liquidity have a significant impact on the financial performance of commercial banks in Pakistan. This research suggested that commercial banking zone working in Pakistan should be brought into being place fraud discernment appliance by framing up a well-organized and systematic, well-established, and reliable and operating fraud detection sub-division to supervise all the transactions that are contemplated vulnerable to fraudulent practices to minimization vice for them to maximization of profits for better monetary/financial progress/performance.

Suggested Citation

  • Syeda Ambreen Fatima Bukhari & Syeda Tabinda Rubab & Noor Fatima & Asad Ullah & Muhammad Faiz Madhi, 2024. "Empirical Study to Evaluate Financial Fitness of Listed Commercial Banks of Pakistan," Bulletin of Business and Economics (BBE), Research Foundation for Humanity (RFH), vol. 13(2), pages 898-907.
  • Handle: RePEc:rfh:bbejor:v:13:y:2024:i:2:p:898-907
    as

    Download full text from publisher

    File URL: https://bbejournal.com/index.php/BBE/article/view/923/971
    Download Restriction: no

    File URL: https://bbejournal.com/index.php/BBE/article/view/923
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Abuzayed, Bana & Al-Fayoumi, Nedal & Molyneux, Phil, 2018. "Diversification and bank stability in the GCC," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 57(C), pages 17-43.
    2. Audi, Marc & Al-Masri, Razan, 2024. "Examining the Impacts of Regulatory Framework on Risk in Commercial Banks in Emerging Economies," MPRA Paper 121587, University Library of Munich, Germany.
    3. Andrea Sironi, 2018. "The evolution of banking regulation since the financial crisis: a critical assessment," BAFFI CAREFIN Working Papers 18103, BAFFI CAREFIN, Centre for Applied Research on International Markets Banking Finance and Regulation, Universita' Bocconi, Milano, Italy.
    4. Zia Ur Rehman & Noor Muhammad & Bilal Sarwar & Muhammad Asif Raz, 2019. "Impact of risk management strategies on the credit risk faced by commercial banks of Balochistan," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 5(1), pages 1-13, December.
    5. Michaelas, Nicos & Chittenden, Francis & Poutziouris, Panikkos, 1999. "Financial Policy and Capital Structure Choice in U.K. SMEs: Empirical Evidence from Company Panel Data," Small Business Economics, Springer, vol. 12(2), pages 113-130, March.
    6. Liang, Deron & Lu, Chia-Chi & Tsai, Chih-Fong & Shih, Guan-An, 2016. "Financial ratios and corporate governance indicators in bankruptcy prediction: A comprehensive study," European Journal of Operational Research, Elsevier, vol. 252(2), pages 561-572.
    7. Chen, Lirong & Gao, Feiyang & Guo, Tongtong & Huang, Xuanhao, 2023. "Mixed ownership reform and the short-term debt for long-term investment of non-state-owned enterprises: Evidence from China," International Review of Financial Analysis, Elsevier, vol. 90(C).
    8. Jiang, Chunxia & Yao, Shujie & Zhang, Zongyi, 2009. "The effects of governance changes on bank efficiency in China: A stochastic distance function approach," China Economic Review, Elsevier, vol. 20(4), pages 717-731, December.
    9. Jung, Hosung & Kim, Dongcheol, 2015. "Bank funding structure and lending under liquidity shocks: Evidence from Korea," Pacific-Basin Finance Journal, Elsevier, vol. 33(C), pages 62-80.
    10. Jennie Bai & Arvind Krishnamurthy & Charles†Henri Weymuller, 2018. "Measuring Liquidity Mismatch in the Banking Sector," Journal of Finance, American Finance Association, vol. 73(1), pages 51-93, February.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Philippe Jardin, 2025. "Designing Ensemble-Based Models Using Neural Networks and Temporal Financial Profiles to Forecast Firms’ Financial Failure," Computational Economics, Springer;Society for Computational Economics, vol. 65(1), pages 149-209, January.
    2. repec:rfh:bbejor:v:13:y:2025:i:3:p:450-458 is not listed on IDEAS
    3. Tan, Chunzhi & Liu, Junjie & Ma, Junfeng & Liu, Bin & Ren, Boru, 2025. "When climate policies waver: Firms, debt, and the investment-financing maturity mismatch," Finance Research Letters, Elsevier, vol. 85(PB).
    4. Kasım Kiracı & Nurhan Aydin, 2018. "Factors that Determine the Capital Structure: An Empirical Study on Low-cost Airlines," Scientific Annals of Economics and Business (continues Analele Stiintifice), Alexandru Ioan Cuza University, Faculty of Economics and Business Administration, vol. 65(3), pages 227-246, September.
    5. Oleg Deev & Martin Hodula, 2016. "Sovereign default risk and state-owned bank fragility in emerging markets: evidence from China and Russia," Post-Communist Economies, Taylor & Francis Journals, vol. 28(2), pages 232-248, April.
    6. Xu, Kefan & Yuan, Peng & Yu, Renjie, 2025. "The effects of mixed ownership reforms on Chinese firms’ emissions," Economic Analysis and Policy, Elsevier, vol. 86(C), pages 191-209.
    7. Jing Wu & Qiuge Yao & Haoxiang Tong, 2019. "Does monetary policy tightening reduce the maturity mismatch of investment and financing: Empirical evidence from China," Journal of Applied Finance & Banking, SCIENPRESS Ltd, vol. 9(6), pages 1-3.
    8. Thi Hong Hoang & Călin Gurău & Amine Lahiani & Thuy-Luu Seran, 2018. "Do crises impact capital structure? A study of French micro-enterprises," Small Business Economics, Springer, vol. 50(1), pages 181-199, January.
    9. Wang, Xiaoxiao, 2024. "Bank affiliation and lottery-like characteristics of mutual funds," International Review of Economics & Finance, Elsevier, vol. 93(PB), pages 944-963.
    10. Rana El Bahsh & Ali Alattar & Aziz N. Yusuf, 2018. "Firm, Industry and Country Level Determinants of Capital Structure: Evidence from Jordan," International Journal of Economics and Financial Issues, Econjournals, vol. 8(2), pages 175-190.
    11. Swain, Pankaj & Misra, Arun Kumar & Kumar, Satish & Madhavan, Vinodh, 2026. "Banking on the brink: An incremental cost-based view of financial stress," Research in International Business and Finance, Elsevier, vol. 81(C).
    12. Yanfang Zhang & Mushang Lee, 2019. "A Hybrid Model for Addressing the Relationship between Financial Performance and Sustainable Development," Sustainability, MDPI, vol. 11(10), pages 1-15, May.
    13. Mikael Samuelsson & Anna Söderblom & Alexander McKelvie, 2021. "Path Dependence in New Ventures’ Capital Structures," Entrepreneurship Theory and Practice, , vol. 45(2), pages 319-349, March.
    14. Burcu Buyuran & Ibrahim Halil Eksi, 2020. "Revenue Diversification and Bank Performance: Evidence from Turkey," South-Eastern Europe Journal of Economics, Association of Economic Universities of South and Eastern Europe and the Black Sea Region, vol. 18(1), pages 7-18.
    15. Muhammad Yusuf Amin & Amanat Ali & Bashir Khan, 2019. "Capital Structure of Chinese Firms Across different Sectors: Does Ownership Structure Matter?," Global Economics Review, Humanity Only, vol. 4(2), pages 70-82, June.
    16. Jiang, Cuiqing & Zhou, Yiru & Chen, Bo, 2023. "Mining semantic features in patent text for financial distress prediction," Technological Forecasting and Social Change, Elsevier, vol. 190(C).
    17. Petra Ruckova & Nicole Skuláňová, 2020. "What determines leverage in selected countries of Central and Eastern Europe in the automotive industry," Journal of Administrative and Business Studies, Professor Dr. Usman Raja, vol. 6(5), pages 205-221.
    18. Zhang, Ning & Liu, Cai, 2026. "Confucian culture and corporate maturity mismatch: evidence from China," Finance Research Letters, Elsevier, vol. 87(C).
    19. Japan Huynh, 2025. "Sovereign Bond Holdings, Bank Risk‐Taking, and Macroeconomic Shocks: Evidence From Vietnam," Australian Economic Papers, Wiley Blackwell, vol. 64(2), pages 221-234, June.
    20. Casado Yusta, Silvia & Nœ–ez Letamendía, Laura & Pacheco Bonrostro, Joaqu’n Antonio, 2018. "Predicting Corporate Failure: The GRASP-LOGIT Model || Predicci—n de la quiebra empresarial: el modelo GRASP-LOGIT," Revista de Métodos Cuantitativos para la Economía y la Empresa = Journal of Quantitative Methods for Economics and Business Administration, Universidad Pablo de Olavide, Department of Quantitative Methods for Economics and Business Administration, vol. 26(1), pages 294-314, Diciembre.
    21. Aaqib Younas & Jawad Ahmed & Marc Audi, 2025. "Financial Inclusion or Financial Vulnerability? The Dual Effects of Digital Payment Platforms on Consumer Behaviour," Bulletin of Business and Economics (BBE), Research Foundation for Humanity (RFH), vol. 14(3), pages 1-12.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:rfh:bbejor:v:13:y:2024:i:2:p:898-907. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Dr. Muhammad Irfan Chani The email address of this maintainer does not seem to be valid anymore. Please ask Dr. Muhammad Irfan Chani to update the entry or send us the correct address (email available below). General contact details of provider: https://edirc.repec.org/data/rffhlpk.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.