Degree
Master of Science in Economics
Faculty / School
Faculty of Business Administration (FBA)
Department
Department of Economics
Date of Submission
2016-01-01
Supervisor
Dr. Mohammad Nishat, Institute of Business Administration, Karachi
Project Type
MSECO Research Project
Access Type
Restricted Access
Keywords
Pakistan, Macroeconomic volatility, Financial sector, Financial soundness indicators, Recursive Vector Auto Regression
Abstract
We analyze impact of macroeconomic volatility on the soundness of financial sector of Pakistan. Since financial sector of Pakistan is dominated by banking sector, we focus our analysis on the soundness of banking sector. From the list of Financial Soundness Indicators, we choose Non-Performing Loan Ratio for analysis mainly because of its economic intuition and data availability. Using quarterly data from year 2000:Q3 to year 2015:Q4, we employ Recursive Vector Auto Regression framework for conducting our analysis. Variables of interest used in this report are Non-Performing Loan Ratio (NPLR), Output Gap (OG), Inflation (INF) and Policy Rate. Our findings indicate that macroeconomic variables indeed influence performance of banking sector.
Pages
ix, 34
Recommended Citation
Hussain, M. A. (2016). Economic determinants of financial soundness in Pakistan (Unpublished graduate research project). Institute of Business Administration, Pakistan. Retrieved from https://ir.iba.edu.pk/research-projects-mseco/15
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