IDEAS home Printed from https://ideas.repec.org/a/asi/joabsj/v2y2012i6p142-152id4036.html
   My bibliography  Save this article

Global Financial Crises and its Impact on Banking Sector in Pakistan

Author

Listed:
  • Lutuf Ali Phulpoto
  • Aisha Bashir Shah
  • Faiz Muhammad Shaikh

Abstract

The research investigates the performance of Islamic banking in Global economic recession period in Compare with Conventional Banking from the period of September 2008b to December 2009 in Pakistan. Data were collected from four leading Islamic banks and Four Conventional banks from the period of Sept.2008 to December 2009 operated in Pakistan. It was revealed that Islamic banking has more growth in the recession period in Pakistan. The main reason of slow growth of Islamic banking is due to unawareness among the customers and the conventional banks in Pakistan has longer history and experience in doing the banking business and holding dominant position in the financial sector in Pakistan. The financial ratios such as return on Assets (ROA), return on Equity (ROE), Loan to Deposit ratio (LDR) Loan to Asset Ratio(LAR) Debt to equity Ratio(DER), Assets Utilization(AU), and Income to Expense ratio(IER) are used to assess banking performance. T test and F-test were used in determining the significance of results. It was revealed that Islamic banking is less profitable, less risky and less efficient compare with the conventional banking in Pakistan during the study period 2007- to marchKey implication of current study to analyze the impact of Global Economic Recession wave affected the Banking sector in Pakistan in general and Islamic banking particular. This research also provides the guide line for the investors to invest in Islamic banking.This study contributes and explores the opportunities for the customers and investors to invest in the Islamic banking because that is less risky compare with the Conventional banking in Pakistan.

Suggested Citation

  • Lutuf Ali Phulpoto & Aisha Bashir Shah & Faiz Muhammad Shaikh, 2012. "Global Financial Crises and its Impact on Banking Sector in Pakistan," Journal of Asian Business Strategy, Asian Economic and Social Society, vol. 2(6), pages 142-152.
    • Handle: RePEc:asi:joabsj:v:2:y:2012:i:6:p:142-152:id:4036
    as

    Download full text from publisher

    File URL: https://archive.aessweb.com/index.php/5006/article/view/4036/6314
    Download Restriction: no
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Ghulam Ghouse & Saud Ahmed Khan & Muhammad Arshad, 2019. "Volatility Modelling and Dynamic Linkages between Pakistani and Leading Foreign Stock Markets: A Multivariate GARCH Analysis," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 58(3), pages 265-282.
    2. Akhtar, Ch. Shoaib & Awan, Sajid Hussain & Naveed, Shaheryar & Ismail, Kamariah, 2018. "A comparative study of the application of systems thinking in achieving organizational effectiveness in Malaysian and Pakistani banks," International Business Review, Elsevier, vol. 27(4), pages 767-776.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:asi:joabsj:v:2:y:2012:i:6:p:142-152:id:4036. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Robert Allen (email available below). General contact details of provider: https://archive.aessweb.com/index.php/5006/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.