Impact of Mobile Remittances on the Performance of Banks in Pakistan: A Panel Data Analysis

The research aimed to explore the effect of a new technological development, Mobile Remittance, on the profitability of Pakistani banks. For this purpose five bank’s data have been chosen over the period of 5 years, i.e., from 2009-2013. Return on Assets is used as the proxy for measuring bank profi...

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Bibliographic Details
Published inEuropean researcher Vol. 99; no. 10; pp. 658 - 666
Main Authors Ahmed, Raheel, Mughal, Khurrum S., Salman, Aneel, Makarević, Nedim
Format Journal Article
LanguageEnglish
Russian
Published Academic Publishing House Researcher 01.11.2015
Subjects
banks performance
branchless banking
capital adequacy
credit risk
mobile remittances
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Summary:The research aimed to explore the effect of a new technological development, Mobile Remittance, on the profitability of Pakistani banks. For this purpose five bank’s data have been chosen over the period of 5 years, i.e., from 2009-2013. Return on Assets is used as the proxy for measuring bank profitability. The empirical result of this study show that mobile remittances, off-balance sheet activities and capital adequacy ratio have a positive coefficient which indicates that these variables play an important role to increase banks profitability. The credit risk has a negative coefficient that shows that increase in the ratio of credit risk decreases the bank's performance.
ISSN:2219-8229
2224-0136
DOI:10.13187/er.2015.99.658