Abstract:
The ambition ofthis report is to discuss the inherent factors ofthe banking system as well as the
short-term and long-term effects ofintellectual capital efficiency on bank stability in Pakistan. The
VAIC model is used to measure the ICE, which is composed ofthree capitals: human, relational,
and structural. The findings ofthe statistical panel regression support the hypothesis that higher
Intellectual capital efficiency relates to improved bank stability and supports the resource-based
theory. Other than that, research also reveals the long-term contribution of intellectual capital
efficiency to bank stability. Further, the control variable CG index proxies such as bank
measurement, bank age, board composition, and bank size demonstrate a favorable effect on bank
Stability. The resource-based strategy can be applied to enhance intangible investments and create
a long-lasting competitive advantage. Future assessment is anticipated to take into account the risk
management approach to examine the association between IC efficiency and banks' stability.
