| Peer-Reviewed

The Effect of Financial Variables on Bank Performance Pre and Post Financial Crisis

Received: 7 December 2016     Accepted: 19 December 2016     Published: 5 January 2017
Views:       Downloads:
Abstract

This study endeavored to find out the effect of financial variables on bank performance pre and post financial crisis of 2008 in Pakistan. Using regression analysis the study revealed that financial crises of 2008 posed a significant influence on the performance of conventional and Islamic banks in Pakistan and pronounced a negative relationship between financial crises and bank performance. The Capital adequacy, assets quality, management quality, liquidity quality, earning quality and bank size posed a negative influence on bank performance during crises while NIM / NNIM showed no effect. Furthermore, Islamic banks affected far less as compared to conventional banks.

Published in Journal of Finance and Accounting (Volume 4, Issue 6)
DOI 10.11648/j.jfa.20160406.18
Page(s) 378-382
Creative Commons

This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.

Copyright

Copyright © The Author(s), 2017. Published by Science Publishing Group

Keywords

Financial Crisis, Bank Performance, ROA, ROE and NIM/ NNIM

References
[1] Siraj, K. and P. S. Pillai, Comparative study on performance of Islamic banks and conventional banks in GCC region. Journal of Applied Finance and Banking, 2012. 2 (3): p. 123.
[2] Al-Gazzar, M. M., The Financial Performance of Islamic vs. Conventional Banks: An Empirical Study on The GCC & MENA Region. 2014.
[3] Hanif, M. N. and M. F. Arby, Monetary and fiscal policy coordination. 2003.
[4] Abu-Alkheil, A. M., H.-P. Burghof, and W. A. Khan, Islamic Commercial Banking In Europe: A Cross-Country And Inter-Bank Analysis Of Efficiency Performance. The International Business & Economics Research Journal (Online), 2012. 11 (6): p. 647.
[5] Samad, A. and M. K. Hassan, The performance of Malaysian Islamic bank during 1984-1997: An exploratory study. International Journal of Islamic Financial Services, 1999. 1 (3): p. 1-14.
[6] Safiullah, M., Superiority of conventional banks & Islamic banks of Bangladesh: A comparative study. International Journal of Economics and Finance, 2010. 2 (3): p. 199.
[7] Gunasekaran, A., et al., Benchmarking performance indicators for banks. Benchmarking: an international journal, 2006. 13 (1/2): p. 147-159.
[8] Alam, P. and C. A. Brown, Disaggregated earnings and the prediction of ROE and stock prices: a case of the banking industry. Review of Accounting and Finance, 2006. 5 (4): p. 443-463.
[9] Olson, D. and T. A. Zoubi, Using accounting ratios to distinguish between Islamic and conventional banks in the GCC region. The International Journal of Accounting, 2008. 43 (1): p. 45-65.
[10] Abdulle, M. Y. and S. H. Kassim, Impact of global financial crisis on the performance of Islamic and conventional banks: empirical evidence from Malaysia. Journal of Islamic Economics, Banking and Finance, 2012. 8 (4): p. 9-20.
[11] Claessens, S. and N. Van Horen, Impact of foreign banks. 2013.
[12] Eken, M. H., et al., The Effects of Global Financial Crisis on The Behaviour of European Banks: A Risk And Profitability Analysis Approach. ACRN Journal of Finance and Risk Perspectives, 2012. 1 (2): p. 17-42.
[13] Dalaien, B. A., Impact of Global Financial Crisis on Banking Sector of India and Jordan. Academic Journal of Economic Studies, 2016. 2 (1): p. 79-95.
[14] Almanaseer, M., The Impact of the Financial Crisis on the Islamic Banks Profitability-Evidence from GCC. International Journal of Financial Research, 2014. 5 (3): p. p176.
[15] Elsiefy, E., Comparative Analysis of Qatari Islamic Banks Performance versus Conventional Banks Before, During and After the Financial Crisis. International journal of business and commerce, 2013. 3 (3): p. 11-41.
[16] Eken, M. H. and S. Kale, Measuring bank branch performance using Data Envelopment Analysis (DEA): The case of Turkish bank branches. African Journal of Business Management, 2011. 5 (3): p. 889-901.
[17] Khamis, M. and A. Senhadji, Learning from the Past-Countries of the Gulf Cooperation Council confronted the global financial crisis from a position of strength. Finance & Development, 2010. 47 (1): p. 50.
[18] Hasan, M. M. and J. Dridi, The effects of the global crisis on Islamic and conventional banks: A comparative study. IMF Working Papers, 2010: p. 1-46.
[19] Rashwan, M. H., How did listed Islamic and Traditional Banks Performed: pre and post the 2008 financial crisis? Journal of Applied Finance and Banking, 2012. 2 (2): p. 149.
[20] Merchant, I. P., Empirical study of Islamic banks versus conventional banks of GCC. Global Journal of Management and Business Research, 2012. 12 (20).
[21] Hussein, M., ISLAMIC FINANCE. 2012, Augsburg University.
[22] Tabash, M. I. and R. S. Dhankar, The flow of Islamic finance and economic growth: An empirical evidence of Middle East. Journal of Finance and Accounting, 2014. 2 (1): p. 11-19.
[23] Kothari, C. R., Research methodology: Methods and techniques. 2004: New Age International.
Cite This Article
  • APA Style

    Asima Saddique, Mahmood Ahmad, Raheel Mumtaz, Muhammad Arif. (2017). The Effect of Financial Variables on Bank Performance Pre and Post Financial Crisis. Journal of Finance and Accounting, 4(6), 378-382. https://doi.org/10.11648/j.jfa.20160406.18

    Copy | Download

    ACS Style

    Asima Saddique; Mahmood Ahmad; Raheel Mumtaz; Muhammad Arif. The Effect of Financial Variables on Bank Performance Pre and Post Financial Crisis. J. Finance Account. 2017, 4(6), 378-382. doi: 10.11648/j.jfa.20160406.18

    Copy | Download

    AMA Style

    Asima Saddique, Mahmood Ahmad, Raheel Mumtaz, Muhammad Arif. The Effect of Financial Variables on Bank Performance Pre and Post Financial Crisis. J Finance Account. 2017;4(6):378-382. doi: 10.11648/j.jfa.20160406.18

    Copy | Download

  • @article{10.11648/j.jfa.20160406.18,
      author = {Asima Saddique and Mahmood Ahmad and Raheel Mumtaz and Muhammad Arif},
      title = {The Effect of Financial Variables on Bank Performance Pre and Post Financial Crisis},
      journal = {Journal of Finance and Accounting},
      volume = {4},
      number = {6},
      pages = {378-382},
      doi = {10.11648/j.jfa.20160406.18},
      url = {https://doi.org/10.11648/j.jfa.20160406.18},
      eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.jfa.20160406.18},
      abstract = {This study endeavored to find out the effect of financial variables on bank performance pre and post financial crisis of 2008 in Pakistan. Using regression analysis the study revealed that financial crises of 2008 posed a significant influence on the performance of conventional and Islamic banks in Pakistan and pronounced a negative relationship between financial crises and bank performance. The Capital adequacy, assets quality, management quality, liquidity quality, earning quality and bank size posed a negative influence on bank performance during crises while NIM / NNIM showed no effect. Furthermore, Islamic banks affected far less as compared to conventional banks.},
     year = {2017}
    }
    

    Copy | Download

  • TY  - JOUR
    T1  - The Effect of Financial Variables on Bank Performance Pre and Post Financial Crisis
    AU  - Asima Saddique
    AU  - Mahmood Ahmad
    AU  - Raheel Mumtaz
    AU  - Muhammad Arif
    Y1  - 2017/01/05
    PY  - 2017
    N1  - https://doi.org/10.11648/j.jfa.20160406.18
    DO  - 10.11648/j.jfa.20160406.18
    T2  - Journal of Finance and Accounting
    JF  - Journal of Finance and Accounting
    JO  - Journal of Finance and Accounting
    SP  - 378
    EP  - 382
    PB  - Science Publishing Group
    SN  - 2330-7323
    UR  - https://doi.org/10.11648/j.jfa.20160406.18
    AB  - This study endeavored to find out the effect of financial variables on bank performance pre and post financial crisis of 2008 in Pakistan. Using regression analysis the study revealed that financial crises of 2008 posed a significant influence on the performance of conventional and Islamic banks in Pakistan and pronounced a negative relationship between financial crises and bank performance. The Capital adequacy, assets quality, management quality, liquidity quality, earning quality and bank size posed a negative influence on bank performance during crises while NIM / NNIM showed no effect. Furthermore, Islamic banks affected far less as compared to conventional banks.
    VL  - 4
    IS  - 6
    ER  - 

    Copy | Download

Author Information
  • Department of Business Administration, Government College University, Faisalabad, Pakistan

  • Department of Business Administration, Government College University, Faisalabad, Pakistan

  • Department of Commerce, Government College University, Faisalabad, Pakistan

  • Department of Commerce, Government College University, Faisalabad, Pakistan

  • Sections