期刊名称:American Journal of Industrial and Business Management
印刷版ISSN:2164-5167
电子版ISSN:2164-5175
出版年度:2016
卷号:06
期号:03
页码:373-381
DOI:10.4236/ajibm.2016.63033
语种:English
出版社:Scientific Research Publishing
摘要:The regulatory outcomes and how the various banks are operating in the economy have their significant impact on the overall banking system and in determining the firmness of financial structure. In the current study analysis, we have conducted this work to examine the relationship between the financial market development, bank risks with key indicators and their ultimate impact on financial performance in the banking sector of Pakistan from 2003 to 2011. For this purpose, panel data analysis has been performed and both the firm specific and country specific factors have been considered. The bank risk is analyzed in two dimensions of bank risk: first is capitalization ratio that measures the total amount of debt in company’s capital structure (banks behavior) and second one is TEIR-I capital ratio which is the proxy used to compare the present level of risk based assets in firm’s balance sheet. A conceptual model has been developed for this purpose and key findings being made. Stock market development and banking sector development is used to measure the financial market development of the economy. Core findings of the study stated that there exists significant relationship between financial market development in banking sector and financial performance with key indicators.