Global Financial Crisis and its Impact on Efficiency and Performance of Commercial Banks in Pakistan

This study is aimed at investigating the effect of global financial crisis on efficiency and financial performance of banks in Pakistan. The comparative efficiency analysis of pre-crisis, crisis, and after-crisis period is made by applying data envelopment analysis technique. The data for this purpo...

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Bibliographic Details
Published inJournal of business studies quarterly Vol. 8; no. 4; p. 15
Main Authors Chaudhary, Ghulam Mujtaba, Abbas, Zaheer
Format Journal Article
LanguageEnglish
Published Antioch Journal of Business Studies Quarterly (JBSQ) 01.06.2017
Subjects
Acquisitions & mergers
Banking industry
Banks
Commercial banks
Cost control
Data envelopment analysis
Economic crisis
Economic growth
Economic stabilization
Efficiency
Financial institutions
Financial performance
International finance
Investments
Securities markets
Studies
Transition economies
Pakistan
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Summary:This study is aimed at investigating the effect of global financial crisis on efficiency and financial performance of banks in Pakistan. The comparative efficiency analysis of pre-crisis, crisis, and after-crisis period is made by applying data envelopment analysis technique. The data for this purpose were extracted from annual audited reports of commercial banks. The results of analysis depicts that banking efficiency in Pakistan was not substantially affected by the crisis. The affirmation of findings is made by examining the phenomenon in context of financial performance. The panel data methodology is deployed for this purpose and crisis dummy is inserted to capture the effect of crisis. The results again supports the findings of efficiency analysis. The significant effect of crisis on profitability of banking sector in Pakistan is not found. It is concluded that lesser integration of domestic banks with global banks helped Pakistan to survive from sever harmful effects of crisis.
ISSN:2152-1034
2156-8626