Impact of Borrowings on Bank's Profitability of Pakistan

Abstract

The purpose of research study is to measure the Impact of borrowing on banks profitability of Pakistan. The Dependent variable taken for this study is banks profitability in order to find out impact of secure and unsecure borrowing in banking industry of Pakistan. The Independent variables taken for this study include secure and unsecure borrowing in order to measure whether or not these factors are affecting the banks profitability, The Correlation and Multiple Regression methods have been applied to find out the empirical evidence for the study by using SPSS. The applied test has indicated the significant relationship between secured borrowing and unsecured borrowing on profitability of banks in Pakistan. Finally the results show that unsecured borrowing has more significant effect on banks profitability in Pakistan as compare to the secured borrowing in Pakistan.