Abstract:
Purpose: The main aim of the study is to examine the impact GDP growth rate on the Islamic banking on the banking industry of Pakistan, Islamic banks performance and rapid growth in the last decade.
Methodology/sample:
The research depend secondary data is collected by The research is composed of secondary data in which the data has been gathered from the various articles and websites like State bank of Pakistan official website, Research articles on internet and books on internet, accessible researches by the researchers, Internet Websites, SBP reports. Pakistan’s biggest banks like HBL, MCB, Meezan and bankislami bank are selected to evaluate that how GDP growth rate is having an impact on their success. There are few points highlighted as well that how GDP growth rate is impacting the economy of Pakistan.
Findings:
The results of the analysis show that there is an impact of GDP growth rate on banks deposit earnings per shares and have an impact with the 0.000 level of significance whereas return on asset and return on equity has no impact as its level of significance is 0.560 which is greater 0.05 so it is not considered useful.
Practical Implications:
This learning helps the students to classify the GDP growth rate on banking industry in Pakistan. The research is to help the students to explain the impact of GDP growth rate on conventional and Islamic banking
