Thesis
IMPACT OF VOLATILITY IN MACROECONOMIC FACTORS ON THE LENDING BEHAVIOR OF DOMESTIC AND FOREIGN BANKS IN PAKISTAN
By
MUZAHIR ALI
A Thesis Submitted to the Faculty of the Institute of Management Sciences, Peshawar, in Partial Fulfillment of the Requirements for the Degree of
Master of Business Administration (Finance)
INSTITUTE OF MANAGEMENT SCIENCES, PESHAWAR
SESSION 2010-12
CERTIFICATE OF APPROVAL
I certify that I have read “IMPACT OF VOLATILITY IN MACROECONOMIC FACTORS ON THE LENDING BEHAVIOR OF DOMESTIC AND FOREIGN BANKS IN PAKISTAN” by MUZAHIR ALI, and that in my opinions this work meets the criteria for approving a thesis submitted in partial fulfillment of the requirements for the Master of Business Administration (Marketing) at the Institute of Management Sciences, Peshawar.
Supervisor: Name: Mrs. Nadia Iftikhar Designation: Signature: ________________ Coordinator Research & Development Department
Name: Dr. Owais Mufti Signature: _________________ DECLARATION
I, hereby declare that the research submitted to R&DD is my own original work. I am aware of the fact that in case my work is found to be a plagiarized or not genuine, R&DD has the full authority to cancel my research work and I am liable to penal action.
Student’s Name: Muzahir Ali. Date: 06 Feb. 2013.
DEDICATION
I dedicate this effort to my dear elder brothers,
By
MUZAHIR ALI
A Thesis Submitted to the Faculty of the Institute of Management Sciences, Peshawar, in Partial Fulfillment of the Requirements for the Degree of
Master of Business Administration (Finance)
INSTITUTE OF MANAGEMENT SCIENCES, PESHAWAR
SESSION 2010-12
CERTIFICATE OF APPROVAL
I certify that I have read “IMPACT OF VOLATILITY IN MACROECONOMIC FACTORS ON THE LENDING BEHAVIOR OF DOMESTIC AND FOREIGN BANKS IN PAKISTAN” by MUZAHIR ALI, and that in my opinions this work meets the criteria for approving a thesis submitted in partial fulfillment of the requirements for the Master of Business Administration (Marketing) at the Institute of Management Sciences, Peshawar.
Supervisor: Name: Mrs. Nadia Iftikhar Designation: Signature: ________________ Coordinator Research & Development Department
Name: Dr. Owais Mufti Signature: _________________ DECLARATION
I, hereby declare that the research submitted to R&DD is my own original work. I am aware of the fact that in case my work is found to be a plagiarized or not genuine, R&DD has the full authority to cancel my research work and I am liable to penal action.
Student’s Name: Muzahir Ali. Date: 06 Feb. 2013.
DEDICATION
I dedicate this effort to my dear elder brothers,
References: 1.3 Scope of the study: Eleven local and four foreign banks operating in any city of the country is studied and seven years data of advances (2005-11) is taken from the financial annual reports in order to carry out the study 2.2.1 Inflation and bank lending: Rogers (2006) narrated that consumer price index (CPI) value is included while calculating the inflation and it determine the inflation 2.2.2 Gross Domestic Product (GDP) and banks’ lending behavior: It was stated by Barry and Andrew (1997) that banking crisis in rising markets tends to occur in response to a connection of unfavorable developments in domestic and international markets 2.2.3 Exchange rate and banks’ lending: Azis and Thorbecke (2002) identified this fact in Nigeria that depreciation in exchange rate and increase interest rate reduce the growth in loan and in capital at local banks compared to foreign banks