2015

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Browsing 2015 by Author "Nazik Maqsood"

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    Impact of Bank’s Structural Determinants on Banks’ Performance
    (UMT, Lahore, 2015-09-08) Nazik Maqsood
    Purpose/objective: The purpose of conducting this study is to examine the impact of structural determinants on the smaller and larger banks’ performance and to make the comparative analysis of banks’ performance. Design/approach/ methodology: To examine the impact of structural determinants on banks’ performance, bank size (lnTA), liquidity (DEPTA), asset composition (LTA), capital adequacy (CAR), cost management (OCTA), credit risk (LLPTL), productivity (NIETA), efficiency (IELF) are taken as explanatory variables and performance measure (ROAA) is used as dependent variable. To investigate the impact of structural determinants on performance of banks, sample for 7 large banks and 7 small banks is taken from the conventional banks of Pakistan for fourteen years during the period 2001 to 2014. Panel data is used to conduct the analysis. Ordinary least square method, fixed and random effect regression techniques are applied on data. Findings: Results reveal that larger banks of Pakistan have better performance than smaller banks. Results of regression analysis show that bank size (lnTA), asset composition (LTA), productivity (NIETA), capital adequacy (CAR) have positive significant but cost management (OCTA) has negative impact on the performance of large banks. Efficiency (IELF), credit risk (LLPTL) and liquidity (DEPTA) have no significant relation with profitability of large banks. But in case of small banks only three determinants asset composition (LTA) and capital adequacy (CAR) have positive but credit risk (LLPTL) has negative significant relation with performance of small banks.