Impact of Increased capital requirement on commercial bank : A detailed case study on bankislami Pakistan ltd

Abstract

The main objective of this research work is to find out the impact of increased capital requirement by state bank of Pakistan on commercial bank this is a detailed case study on Bankislami Pakistan ltd. So the sample selected for purpose of my study is Bankislami Pakistan ltd. The sample data is collected of all variable from financial statement of Bankislami for the time period of eight years from 2006 to 2013. The methodology used to analyze my research work is Regression statistical tool and the linear regression models are used for finding the relationship between selected variables. The variables are increased capital requirement, profits of bank, number of branches, non performing loan, and deposits. Result of the study shows that the Pakistani banking industry has been impacted by increased capital requirement by state bank of Pakistan. Increased capital requirements have statistically significant relationship with profits of bank, number of branches, non performing loan, and deposits of banks. Although a few numbers of studies have been conducted on impact of increased capital requirement but in Pakistan there still exists the gap on this topic as the Pakistani banking industry is still working toward implementing capital requirements strictly.