ipl-logo

Banking Sector Contribution

3414 Words14 Pages

Abstract:
The explored of the study is to determine contribution of banking sector in economic growth of 15 banks over a period from 2009 to 2010. The regression model, correlation analysis and descriptive statistic techniques were used. The co-relation results show that significant and positive relation between advances and deposits. The relationship of gross domestic product, investment, return on asset and advances have insignificant and negative. Furthermore return on asset and return on equity have insignificant and positive relationship. Regression result shows that deposit, investment and return on asset have positive and significant impact on gross domestic product. Interest and advances have negative and insignificant impact on …show more content…

So, being an important factor it is previously being studied frequently by various researchers. Fadare (2004) empirically found the effect of banking industry reforms on economic development in Nigeria by using the data 1999 - 2009. Variables used in his research were mainly interest rate margins, market premiums and total credit of banking sector. The results specify the significant negative correlation among them. In past few decades researchers found a negative influence on the economic growth due to improvements in determinants of financial performance. Other researchers found bad or even no relationship in comparison with different types of financial institutions. According to my knowledge there is a lot of data available on the related topic all around the world but specifically with reference to Pakistani context, I couldn’t find a study specifically in relation with banking performance determinants of Pakistan. There is a need of more research in this aspect of work to explore the influence of profitability, deposit, investments, advances and interest earning (Dr. …show more content…

He used dynamic panel model for this study. In the result if there is under develop financial system then its contribution is limited in economy growth. There is more efficient banking sector then it will increase economy growth.
Din and khawaja (1995) explained the study scope of interest of the banking industry in Pakistan. In this study, data collected was used for cross section model. The finding showed no proof of interest spread which influences the working factors of banking industry.
Al- Laham, et al. (2009) examined the progress of electronic money and its effect on the central bank and monetary policy for the period 1998 to 2004. In this paper analytical method was used to analyze the effect on electronic money in diverse areas. The finding showed that electronic money and good banking network help the transfer of money from one place to another. Furthermore, electronic banking progresses apply for monitory policy and effectiveness

Show More
Related

  • Causal Togs: A Case Analysis Of The Casual Tog Company

    1746 Words  | 7 Pages

    Economic analysis and company performance forecasting are necessary for making investment management (Hiriyappa,2008). There is lack of investment management which has exerted burden over the company to keep getting revenue for current as well as new production plants. If the new plants were set up after examination of organization’s structure and forecast of sales and revenue, then the situation would have been easier. The company mainly depends upon reports by managers who are not communicating well with each other as they are not co-operative. There is an information overload which as barrier to effectively communicate within the organization (Robbins, 2011).

    Read More

  • Next Plc Executive Summary

    544 Words  | 3 Pages

    A slightly low return on assets than the previous year shows that the profitability of the assets of the company falls down a little. Shareholders consider financial statements to make decisions regarding buying and selling their shares. They are also concerned about the maximization of their wealth. They take into account the profitability by showing interest in return on sales or net profit margins.

    Read More

  • Great Depression Dq

    643 Words  | 3 Pages

    Investors tried to withdraw their reserves and unfortunately even the banks had invested in stock. Firstly, this essay will discuss and look at the monetary

    Read More

  • Comcast Essay

    450 Words  | 2 Pages

    The current ratio is .74 and the Quick Ratio is .52 these scores were low this shows the company may have difficulty meeting its current obligations. The Ratio of Liabilities to Owners Equity is 2.32 and the Times Interest total is 5.9 this indicates that the company is able to pay its debts. The profitability measures the company’s ability to earn revenue. The Return on Stockholder’s Equity is 16% and the Return on assets is 4.82% this is desirable and indicates that the company is able to generate a profit. The plan for expansion is also great opportunity for more growth.

    Read More

  • The Controversy Of The Bank War

    411 Words  | 2 Pages

    The banking controversy of the 1830’s became known as The Bank War. It was a campaign started by Andrew Jackson in 1833 to destroy the Second Bank of the United States. He believed that his opposition to the bank had won him national support during his reelection campaign. The Second Bank had been created in 1816 as a successor to the First Bank, whose charter had previously expired. The Second Bank was chartered only for a term of twenty years due to the concerns of many people in Congress.

    Read More

  • The Organizational Structure Of Bank Of America

    850 Words  | 4 Pages

    Organizational Structure Bank of America is an American financial services corporation and is the second largest bank holding organization by assets, in the United States. The headquarter of the financial organization is situated in Charlotte, North Carolina. The bank has approximately 5,700 retail banking offices and 17,250 ATMs in the United States. The online banking system of the bank has more than 30 million active users.

    Read More

  • American Airlines Financial Analysis

    715 Words  | 3 Pages

    By looking at each of these inputs individually, net profit margin, asset turnover and equity ratio, its possible discover the source of a company's return on equity and compare it to its

    Read More

  • The Pros And Cons Of Quantitative Easing

    955 Words  | 4 Pages

    On the other hand, QE can neglect to goad request if banks stay hesitant to loan cash to organizations and families. That being said, QE can in any case straightforwardness the methodology of deleveraging as it brings down yields. Notwithstanding, there is a period slack between money related development and swelling; inflationary weights connected with cash development from QE could manufacture before the national bank acts to counter them. Inflationary dangers are relieved if the framework's economy exceeds the pace of the expand of the cash supply from the moving. On the off chance that creation in an economy builds on account of the expanded cash supply, the estimation of a unit of money may additionally expand, despite the fact that there is more coin accessible.

    Read More

  • Walmart Case Study Essay

    721 Words  | 3 Pages

    However, return on investment (ROI) remains at 19.3% for 2010 and 2009 year and return on assets (ROA) has increased 0.5% from 8.4% to 8.9% respectively. The financial

    Read More

  • Vertical Merger Case Study

    1055 Words  | 5 Pages

    selling firms are absorbed by the buying firm” clearly gives the most simple definition of what truly merger and acquisitions is, with an attempt of defining mergers I would briefly state the consistently discussed types of mergers for which are: Merger and Acquisition are classified into four types which can be explained below: • Horizontal • Vertical • Conglomerate and • Concentric mergers Horizontal Merger: This is a type of merger where a competing firm within the same industry (any by implication similar product) and same level of operation. The principal objective of horizontal merger is expansionary motive. Firms in the same line of business compete with each other for share of the market.

    Read More

  • Wells Fargo: A Career In My Banking Career

    150 Words  | 1 Pages

    Yes. My banking career spans twenty-one years with Wells Fargo through acquisitions and mergers. Beginning in 1995, I was employed by Central Bank & Trust, a subsidiary of Central Bancorporation, Inc. In 1997, Central Bancorporation, Inc. was acquired by Norwest Corporation. In June 1998, Norwest Corporation merged with Wells Fargo. In July 1998, I left Wells Fargo to work for First State Bank of Texas, a subsidiary of Texas Financial Bancorporation.

    Read More

  • Capstone Reflection

    1612 Words  | 7 Pages

    Weaknesses However, there are some limitations in the use of the project’s results. Our project is focusing on the Hong Kong banking industries. Therefore, the results cannot be used in other industries or areas, because of the different situations and environments. In addition, the regression results are built on the basic dividend theories.

    Read More

  • Banking Concept Of Education

    1069 Words  | 5 Pages

    Have you ever sat row upon row, staring at the backs of other students, and being bored out of your mind? Have you ever stood up in front of a classroom of silent students and talked about a particular topic for an agonizing few hours? All you do is listen to the teacher without voicing your outlook. If you have, then you are aware with what Paulo Freire defines as the “banking concept of education” from his paper “The Banking Concept of Education”. He defines this concept harmful to the educational system, due to no interactions between the student and teacher.

    Read More

  • Strengths And Weaknesses Of The Banking Industry

    976 Words  | 4 Pages

    I would frame the banking as an industry that is built on trust. Trust that is reaffirmed by the governments, and regulators. Banks have an imperative role in our economic growth, and development. Correspondingly, without the bank industry, there is no industry to replace them as the conduit for social and economic policy. Equally important, there is no industry to replace them as the key performer in creating our economies multiplier effect.

    Read More

  • Advantages And Disadvantages Of Globalization In Nigeria

    1458 Words  | 6 Pages

    Low productivity and 7. Endemic corruption, greed. Given the Nigeria’s socio economic and political disposition Globalization presented more challenges for the country for it lacks what is needed to be relevant and deal with it untill the nation can achieve a certain measure of good governance, modest economic

    Read More

More about Banking Sector Contribution

Open Document