Abstract:
The significance of financial sector in the economic growth cannot be denied and banking sector, in the capacity of intermediation between borrower and lender, facilitates the economic activities as a part of financial sector. Evaluating the financial conditions and performance of banks has been a considerable issue in the recent years, particularly in developing countries. This phenomenon is attributed to the crucial role of commercial banks in the economy, which is a result of the generally acceptable fact that commercial banks are dominant financial institutions and represents foremost source of financial intermediation in these countries. The examinations of overall performance of banking sector is important to depositors, owners, potential investors and, of course, for the policy makers, as banks are the effective executers of monetary policy of the government.
