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Autor
Ali Zulfiqar (University of Gujrat, Pakistan; UCP (Punjab College)), Bashir Zahid (University of Gujrat, Pakistan), Arshad Muhammad Usman (University of Gujrat, Pakistan), Ghazali Ahmed (University of Gujrat, Pakistan), Asif Muhammad (University of Gujrat, Pakistan), Khan Fahad Najeeb (University of Sargodha, Pakistan)
Tytuł
Analysis of Some Inner Factors Affecting the Lending Rate and Commercial Bank Behavior (An Empirical Study Based on the Commercial Banking Sector of Pakistan)
Źródło
e-Finanse, 2016, vol. 12, nr 4, s. 111-119, tab., bibliogr. s. 119
Słowa kluczowe
Banki komercyjne, Kredyt bankowy, Zmienne objaśniające, Analiza ekonometryczna
Commercial banks, Bank credit, Explanatory variable, Econometric analysis
Uwagi
summ.
Kraj/Region
Pakistan
Pakistan
Abstrakt
This research study aims to investigate the potential inner factors of the lending rate in the commercial banking sector of Pakistan. For this purpose, seven bank-specific explanatory variables (capital adequacy, management efficiency, liquidity, asset quality, investment to asset, loan to asset and deposit to asset ratios) were selected to determine their impact on lending behavior. Panel data techniques were emplyed on secondary data collected from the annual financial reports from a sample of ninteen major commercial banks over a period of 2007 to 2014. For the purpose of analysis, descriptive statistics, Pearson correlation and panel data techniques for regression analysis such as the fixed effect regression models were considered after conforming to the Hausman specification (1978) test. The findings of this study revealed that only four out of seven explanatory variables (ratio of investment to total assets, deposit to asset, loan to asset and liquidity ratio) have a significant relationship with lending rate. Two of the significant determinants (liquidity ratio and investment to asset ratio) are positively correlated while the remaining two significant explanatory variables (loan to asset ratio and deposit to asset ratio) are found negatively correlated with lending rate. The findings of the study are applicable to the banking sector of Pakistan. The current study ignored the use of macro factors like GDP and inflation, etc. which could be used in future research. (original abstract)
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Bibliografia
Pokaż
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  2. Arifi, E., Durguti, E., Tmava, Q., Kryeziu, N. (2014). Empirical analysis of Basel III Effects in Interest Rate on the Kosovo Banking Systejm. European Scientific Journal, 10(28).
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  8. Georgievska, L., Kabashi, R., Manova-Trajkovska, N., Mitreska, A., Vaskov, M. (2011). Determinants of Lending Interest Rates and Interest Rates Spreads. Paper presented at the InBank of Greece, Special Conference Paper.
  9. Hannoun, H. (2010). The Basel III Capital Framework: a Decisive Breakthrough. BIS, Hong Kong.
  10. Hussain, M.S., Ramzan, M., Ghauri, M.S.K., Akhtar, W., Naeem, W., Ahmad, K. (2012). Challenges and Failure of Implementation of Basel Accord II and Reasons to Adopt Basel III both in Islamic and Conventional Banks. International Journal of Business and Social Research, 2(4), 149-174.
  11. Kananu, E., Ireri, J. (2015). Effects of Operational Costs on Lending Interest Rates of Commercial Banks. Journal of Business Economics and Finance, 4 (3).
  12. Kimeria, S.N. (2014). Determinants of Lending Rates of Commercial Banks in Kenya. University of Nairobi.
  13. Mbao, F.Z., Kapembwa, C., Mooka, O., Rasmussen, T., Sichalwe, J. (2014). Determinants of Bank Lending Rates in Zambia: A Balance Sheet Approach**.
  14. Ngata, D.M., Njeru, D.A. (2015). Effect of Basel Liquidity Rules on the Interbank Money Market Lending Rates in Kenya: A Survey of Commercial Banks in Kenya. International Journal of Scientific and Research Publications, 5(11), 381-396.
  15. Ngigi, M.K. (2014). Determinants of Lending Interest Rates in Deposit Taking Microfinance Institutions in Kenya.
  16. Ngumi, S.M. (2014). The Effect of Lending Interest Rates on Financial Performance of Deposit Taking Micro Finance Institutions in Kenya. University of Nairobi.
  17. Nucu, A.E. (2011). The Challenges of Basel III for Romanian Banking System. Theoretical and Applied Economics, 12(12), 59.
  18. Ongore, V.O., Kusa, G.B. (2013). Determinants of Financial Performance of Commercial Banks in Kenya. International Journal of Economics and Financial Issues, 3(1), 237.
  19. Richard, E.O., Okoye, V. (2014). Appraisal of Determinants of Lending Behaviour of Deposit Money Banks. In N. International Journal of Scholarly Research Gate, 2(3), 142-155.
  20. Rotich, F.K.M., Gladys, D. (2014). Assesment of Challenges Affecting Adjustments in Lending Rates Among the Selected Commercial Banks in Kenya.
  21. Siddiqui, M.A. (2012). Towards Determination of Interest Spread of Commercial Banks: Empirical Evidences from Pakistan. African Journal of Business Management, 6(5), 1851.
Cytowane przez
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ISSN
1734-039X
Język
eng
URI / DOI
http://dx.doi.org/10.1515/fiqf-2016-0013
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