EFFECT OF CPEC & OTHER FACTORS ON BANKS PROFITABILITY: EVIDIENCE FROM LEADING COMMERCIAL BANKS OF PAKISTAN

Abstract

Purpose The purpose ofthis study is to clarify the impact ofCPEC and other variables on the measures of profitability of commercial banking sector ofPakistan. Methodology & Design This has been done through taking the reference ofthe leading banks ofthe commercial banking industry. Findings The study is one of the studies associated with theory building approach as there were no studies in the past associated with the profitability of any industry of Pakistan. The findings of the study suggest that only bank's size and NPL/Total liabilities have positive influence on ROA in the banking sectors ofPakistan while other factors do not have significant influence on both ROA and ROE in the banking sector of Pakistan. Recommendations This research is immensely beneficial for policy makers of Pakistan so to have idea regarding the actual impact ofCPEC as compared to the perceived impact ofCPEC and other factors on the bank’s profitability (ROA & ROE). The future research in this domain might be done on other measures of banking sector like on profitability of Islamic Banking sector as Islamic Banking is on growth during recent times