Influence of Bank Specific and Macroeconomic Factors On Profitability of Commercial Banks (The case study of different countries)
Influence of Bank Specific and Macroeconomic Factors
On Profitability of Commercial Banks
(The case study of different countries) Tayba Maqsood
Master in business administration
Department of management sciences
University Of Gujrat, Gujrat, Pakistan
E-mail: Tayba.iman@gmail.com
Abstracts
Purpose-
The purpose of this paper is to identify the influence of bank specific and macroeconomic factors on profitability of commercial banks over the period of 2006 to 2012.
Methodology-
In order to achieve the study objective and to answer the question, return on assets and return on equity as dependent variable Further Bank specific and macro economic determinant are used. The employing descriptive statistics, correlation and regression analysis are used.
Finding –
The study results signify that banks with larger assets size and with efficient management lead to greater return on assets.
Originality –
The paper shows that management efficiency regarding operating expenses positively and significantly affects the banks’ profitability.
Key words- Return on Assets, Return on Equity, Inflation, capital adequacy, Bank specific determinant, profitability.
Type of paper –
The type of this paper is Research paper.
1 .Introduction: In economy the banking sector plays important role. The financial sector of economy may perform many functions. The financial institutions are the main source of providing fund to the general public. Financial sector today faced many challenges. The economy growth rate is also influenced by the financial institution. In addition, insolvencies of bank can lead to crisis as a whole economy. The banking sector profitability contributes in economies and some time this profitability contribute positively and some time it is negative that affect our economy (Athanasoglou et al., 2005). For that reason,
On Profitability of Commercial Banks
(The case study of different countries) Tayba Maqsood
Master in business administration
Department of management sciences
University Of Gujrat, Gujrat, Pakistan
E-mail: Tayba.iman@gmail.com
Abstracts
Purpose-
The purpose of this paper is to identify the influence of bank specific and macroeconomic factors on profitability of commercial banks over the period of 2006 to 2012.
Methodology-
In order to achieve the study objective and to answer the question, return on assets and return on equity as dependent variable Further Bank specific and macro economic determinant are used. The employing descriptive statistics, correlation and regression analysis are used.
Finding –
The study results signify that banks with larger assets size and with efficient management lead to greater return on assets.
Originality –
The paper shows that management efficiency regarding operating expenses positively and significantly affects the banks’ profitability.
Key words- Return on Assets, Return on Equity, Inflation, capital adequacy, Bank specific determinant, profitability.
Type of paper –
The type of this paper is Research paper.
1 .Introduction: In economy the banking sector plays important role. The financial sector of economy may perform many functions. The financial institutions are the main source of providing fund to the general public. Financial sector today faced many challenges. The economy growth rate is also influenced by the financial institution. In addition, insolvencies of bank can lead to crisis as a whole economy. The banking sector profitability contributes in economies and some time this profitability contribute positively and some time it is negative that affect our economy (Athanasoglou et al., 2005). For that reason,