The Effect of Financial Variables on Bank Performance Pre and Post Financial Crisis
Journal of Finance and Accounting
Volume 4, Issue 6, November 2016, Pages: 378-382
Received: Dec. 7, 2016;
Accepted: Dec. 19, 2016;
Published: Jan. 5, 2017
Views 4493 Downloads 293
Asima Saddique, Department of Business Administration, Government College University, Faisalabad, Pakistan
Mahmood Ahmad, Department of Business Administration, Government College University, Faisalabad, Pakistan
Raheel Mumtaz, Department of Commerce, Government College University, Faisalabad, Pakistan
Muhammad Arif, Department of Commerce, Government College University, Faisalabad, Pakistan
This study endeavored to find out the effect of financial variables on bank performance pre and post financial crisis of 2008 in Pakistan. Using regression analysis the study revealed that financial crises of 2008 posed a significant influence on the performance of conventional and Islamic banks in Pakistan and pronounced a negative relationship between financial crises and bank performance. The Capital adequacy, assets quality, management quality, liquidity quality, earning quality and bank size posed a negative influence on bank performance during crises while NIM / NNIM showed no effect. Furthermore, Islamic banks affected far less as compared to conventional banks.
The Effect of Financial Variables on Bank Performance Pre and Post Financial Crisis, Journal of Finance and Accounting.
Vol. 4, No. 6,
2016, pp. 378-382.
Siraj, K. and P. S. Pillai, Comparative study on performance of Islamic banks and conventional banks in GCC region. Journal of Applied Finance and Banking, 2012. 2 (3): p. 123.
Al-Gazzar, M. M., The Financial Performance of Islamic vs. Conventional Banks: An Empirical Study on The GCC & MENA Region. 2014.
Hanif, M. N. and M. F. Arby, Monetary and fiscal policy coordination. 2003.
Abu-Alkheil, A. M., H.-P. Burghof, and W. A. Khan, Islamic Commercial Banking In Europe: A Cross-Country And Inter-Bank Analysis Of Efficiency Performance. The International Business & Economics Research Journal (Online), 2012. 11 (6): p. 647.
Samad, A. and M. K. Hassan, The performance of Malaysian Islamic bank during 1984-1997: An exploratory study. International Journal of Islamic Financial Services, 1999. 1 (3): p. 1-14.
Safiullah, M., Superiority of conventional banks & Islamic banks of Bangladesh: A comparative study. International Journal of Economics and Finance, 2010. 2 (3): p. 199.
Gunasekaran, A., et al., Benchmarking performance indicators for banks. Benchmarking: an international journal, 2006. 13 (1/2): p. 147-159.
Alam, P. and C. A. Brown, Disaggregated earnings and the prediction of ROE and stock prices: a case of the banking industry. Review of Accounting and Finance, 2006. 5 (4): p. 443-463.
Olson, D. and T. A. Zoubi, Using accounting ratios to distinguish between Islamic and conventional banks in the GCC region. The International Journal of Accounting, 2008. 43 (1): p. 45-65.
Abdulle, M. Y. and S. H. Kassim, Impact of global financial crisis on the performance of Islamic and conventional banks: empirical evidence from Malaysia. Journal of Islamic Economics, Banking and Finance, 2012. 8 (4): p. 9-20.
Claessens, S. and N. Van Horen, Impact of foreign banks. 2013.
Eken, M. H., et al., The Effects of Global Financial Crisis on The Behaviour of European Banks: A Risk And Profitability Analysis Approach. ACRN Journal of Finance and Risk Perspectives, 2012. 1 (2): p. 17-42.
Dalaien, B. A., Impact of Global Financial Crisis on Banking Sector of India and Jordan. Academic Journal of Economic Studies, 2016. 2 (1): p. 79-95.
Almanaseer, M., The Impact of the Financial Crisis on the Islamic Banks Profitability-Evidence from GCC. International Journal of Financial Research, 2014. 5 (3): p. p176.
Elsiefy, E., Comparative Analysis of Qatari Islamic Banks Performance versus Conventional Banks Before, During and After the Financial Crisis. International journal of business and commerce, 2013. 3 (3): p. 11-41.
Eken, M. H. and S. Kale, Measuring bank branch performance using Data Envelopment Analysis (DEA): The case of Turkish bank branches. African Journal of Business Management, 2011. 5 (3): p. 889-901.
Khamis, M. and A. Senhadji, Learning from the Past-Countries of the Gulf Cooperation Council confronted the global financial crisis from a position of strength. Finance & Development, 2010. 47 (1): p. 50.
Hasan, M. M. and J. Dridi, The effects of the global crisis on Islamic and conventional banks: A comparative study. IMF Working Papers, 2010: p. 1-46.
Rashwan, M. H., How did listed Islamic and Traditional Banks Performed: pre and post the 2008 financial crisis? Journal of Applied Finance and Banking, 2012. 2 (2): p. 149.
Merchant, I. P., Empirical study of Islamic banks versus conventional banks of GCC. Global Journal of Management and Business Research, 2012. 12 (20).
Hussein, M., ISLAMIC FINANCE. 2012, Augsburg University.
Tabash, M. I. and R. S. Dhankar, The flow of Islamic finance and economic growth: An empirical evidence of Middle East. Journal of Finance and Accounting, 2014. 2 (1): p. 11-19.
Kothari, C. R., Research methodology: Methods and techniques. 2004: New Age International.