Impact of Liability Management on Profitability of Commercial Banks in Pakistan

Abstract

The objective of this study is to investigate the impact of liability management on the profitability of commercial banks in pakistan. 3 determinants of liability management are used (i.e., deposits, borrowings and liquidity risk) and their impact has been checked on 3 measures of profitablility (i.e. , met profit margin, return on assets and earnings per share)7 commercial banks are selected on the basis of pakistan credit rating agency. decondary data is collected from banks annual reports and the time span taken is of 5 years from 2018 to 2022. multiple regression method is used to identify the impact of results are find out using eviews. the study concluded that the banks should increase deposits, reduce borrowings and should rely on risk and return tradepff theory and earning per share in positively impacted by deposits only.