Estimating the Efficiency of Pakistani Banks (CD)

Abstract

This project is specific to banking sector efficiency following financial sector. Specifically, banking sector has been chosen from the financial system because o f two main reasons. First , banking sector covers a significant part of f inancial system having its influence to allocate funds amongst private and public sector . Second, banking industry had undergone immense structural changes after financial advancement , mergers and acquisition from a monopolist i c structure i n the pre- reform period . This project aims to estimate the relative cost efficiency of Pakistani commercial banks after 2003 . The purpose of estimating the relative cost efficiencies of banking industry is to ga i n insights of their relative efficienc ies by analyzing their balance sheets and income statement items. In this project research team estimat ed the cost efficiency of banking industry. Five scheduled bank were selected in this project HBL , ABL , BOP NBP and MCB and six year fixed panel set data. The Regression and correlation coefficient using Minitab statistical tool were calculated .