Abstract:
“The purpose of this research is to examine the relationship between bank‐specific andmacro‐economic
indicator over bank performance by using data of ten Pakistani banks including five conventional banks
and five Islamic banks over the period 2010‐2014. Dependent variable taken for this study is Return on
assets, Return on Equity to measure the Banking Sector”
“Performance and independent variable taken for this study including specific factors (Size, Capital,
Loan, Deposits, Expenses, Credit Risk and Liquidity) and macroeconomic factors (Gross Domestic
Product, Foreign Direct investment and Inflation).This paper uses the correlation and regression method
to investigate the impact of size, loans, capital, deposits, liquidity, credit risk, expenses, economic
growth, inflation and foreign direct investment on major performance indicators. The empirical results
have found strong evidence that both internal and external factors have a strong influence on the
performance.”
“A result of study denotes that credit risk, expenses and inflation have indirect link with the bank
performance, whereas size of bank, capital, deposit and loan have a significant positive relation with
bank’s performance and liquidity have insignificant positive relation with Performance of bank. This
study reveals the positive insignificant relation between GDP and performance but significant relation
between FDI and performance and indirect relation between inflation and profitability. The results of
the study are of value to both academics and policy makers.”
