The impact of foreign banks practices on local banks business in Islamabad

Abstract

This is a descriptive, quantitative and hypotheses testing study conducted on local banks Islamabad. The study revolves around exploring the impact of foreign banks on the business of local banks. This study has a particular interest in banking sector of Pakistan in which foreign banks are giving tough competition to local banks. The purpose of this study is to investigate and explore the impact of foreign banks on local banks which based on following motives; those are technology, consumer loans, and customer services. In this study questionnaire was used for data generation. We received 100 responses out of 100 questionnaires which we got answered ourselves by going to the field ourselves. Data was then analyzed to test the hypotheses. Findings: The finding of this study is that foreign banks are gaining more edge over local banks. It got very much clear from the data analysis that technology, consumer loans and customer services play a vital role in providing a competitive edge to foreign banks. Hence it could be concluded that local banks should be more advance in technology implementation, offerings various types of consumer loans and customer services to give a tough competition to foreign banks. Contribution: This paper investigates foreign banks practices that affect the local banks business, so it will contribute for the policy makers to take corrective measure for the future purposes. That is to take correct measures to satisfy their consumers in terms of technology, consumer loans and customer services.