Explore publications.

Studies on the impact of digitalisation on bank credit allocation are relatively scarce. Digital technologies have a significant impact on economic growth, the labour market, commodity and asset prices, and international trade. The recent surge in innovation and digitalisation within the financial sector has brought about tremendous changes in bank business models and credit distribution, significantly affecting economic growth. Digital transformation has led to a new banking business model of collaboration between emerging Fintechs and conventional commercial banks, often called a “partnership model”. Here, the banking system is viewed as the evolutionary outcome of monetary financial institutions, constantly adapting to technological change. This ongoing evolution has determined the pattern of credit allocation, ultimately shaping its effects on economic growth. Drawing upon authoritative primary data and sector-specific lending indicators, this study seeks to advance existing scholarly research regarding the impact of digital transformation on bank credit allocation. The contribution of this research stems from comparing the digital transformation of banking systems in the UK and Denmark and examining how digitalisation has led to divergent trajectories in bank credit allocation. The study explores credit allocation under the digital transformation of banking and its effect on overall economic growth. In this sense, bank credit allocation extends beyond traditional industrial firms to reach various other sectors of the economy. Specifically, this research demonstrates how technological advancements in the banking sector directly impact overall economic performance, drawing on empirical evidence from the UK and DK as selected case studies. Empirical evidence demonstrates that bank lending has prioritised credit for financial market trading and real estate mortgages at the expense of the productive sector. This is particularly evident in the ever-growing volume of lending directed toward already existing assets. The prevalence of non-productive credit effectively illustrates that the banking system is increasingly driving the financialisation of the economy.  

Purpose: Using panel data approach in Pakistani banking sector for 7 year time period from 2010 to 2016, the aim behind this study was to examine the bank specific, industry specific and macroeconomic determinants of bank profitability Research Design: Quantitative research design has been employed with OLS, random effect model and fixed effect model, moreover regression and correlation analysis has been used in this study Findings: Rise in NPLs ratio, Loan loss provision, inflation and exchange rate reduces the profitability of banks while increase in market power, bank size, capital adequacy enhance the profitability Practical Implication: The deleterious impact of different indicators on profitability of banks shows that distressed banking sector can cause hindrance in not only growth of financial sector but can also cause the poor growth of economy. Outcomes of the study emphasis on the need of clear-out of NPLs to keep financial sector sound as NPLs cause high loan loss provision which effect the capitalization of banks that ultimately effect the economic growth of financial as well as other sectors of economy. Banking supervisory agencies should pay attention towards banking monitory policies and banks macroeconomic policies Originality/value: This study examine the impact of all three types of indicator (Bank specific, industry specific and macroeconomic) on banks profitability by employing latest data from 2010 to 2016 in which major reforms were held in banking industry of Pakistan because there exist rare studies with all three types of variables with latest figures

The aim of the empirical study is to investigate credit risk determinants in banking sectors across three kinds of South Asian economies. An accumulated sample of 105 unbalanced panel data of financial firms over the period of 2000-2015, by applying General Method of Moment (GMM) estimation techniques one-step at the difference in order to identify factors influencing credit risk. This study is inspired by two broad categories of explanatory variables which are bank-specific and macroeconomic. Bank-specific factors influencing unsystematic risk, while macroeconomic factors promoting systematic risk. The study uses a proxy of non-performing loans for credit risk in banking sectors of Pakistan, India, and Bangladesh. The empirical results have been found aligned with theoretical arguments and literature as expected. In comparison, NPLs in Pakistan is greater than India and Bangladesh, while India has the lowest ratio of non-performing loans. The study documents that bank-specific factors (inefficiency, profitability, capital ratio and leverage) have a significant contribution towards credit risk. Further, the study also finds a significant impact of macroeconomic variables on non-performing loans. While, the result in the case of Bangladesh predicts contradictions that have no significant effect on non-performing loans at various levels. The overall results indicate that credit risk is not influenced by only external factors but also affect by internal factors like bad management and skimping etc.

This paper investigated the influence of factors on the intention to adopt Internet banking services among students of higher education in Pakistan. Theoretical framework used for this study has been adopted from Technology Acceptance Model (TAM) with four independent variables. Convenience sampling method was used with a total of valid 220 respondents, which included students of Khadim Ali Shah Bukhari Institute of Technology (KASBIT), Karachi, Pakistan. Data was collected through self administered questionnaire of two parts: Demographic and Likert scale multi-item scale for variables under study. Results indicatedthat convenience, perceived credibility, and perceived usefulness had significant positive influence among students on the intention to adopt Internet banking. The findings from this research would be useful for banks in the subject area, particularly for students in Pakistan.