Abstract:
Financial regulations are most important to progress the
liquidity and solvency of financial institutions for every
country in the globe. Strict financial regulations may be making
safe for bank stability. The study empirically investigates how
the previously executed financial regulations enforce by state
bank of Pakistan (SBP), have an effect on individual bank’s
banking insolvency. This study employs sample of 09 commercial
banks of Pakistan over a period of time2011 to 2015 on a
quarterly basis in Pakistan.
Unlike other studies, this study employs the total assets
structure of commercial banks for categorization of commercial
banks and categorized banks like large banks, medium banks and
small banks. This study employs ZSCOR to compute the banking
insolvency of commercial banks in Pakistan. Panel data analysis
is used to describe the relationship between financial
regulations and banking insolvency of commercial banks fora
sample selected commercial banks in Pakistan.
