Potential of market discipline in Pakistan: The bank depositors’ perspective
The aim of this research is to ascertain whether Pakistan’s financial system is conducive to market disci-pline. We measure the potential of depositors to induce market discipline in the commercial banking sector. A comprehensive survey of over six thousand respondents was used to gauge their propen...
| Autores principales: | , , , |
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| Formato: | Artículo preliminar |
| Lenguaje: | Inglés |
| Publicado: |
International Food Policy Research Institute
2016
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| Materias: | |
| Acceso en línea: | https://hdl.handle.net/10568/148136 |
| _version_ | 1855525162038853632 |
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| author | Mirza, Nawazish Naqvi, Bushra Rizvi, Syed Kumail Abbas Rahat, Birjees |
| author_browse | Mirza, Nawazish Naqvi, Bushra Rahat, Birjees Rizvi, Syed Kumail Abbas |
| author_facet | Mirza, Nawazish Naqvi, Bushra Rizvi, Syed Kumail Abbas Rahat, Birjees |
| author_sort | Mirza, Nawazish |
| collection | Repository of Agricultural Research Outputs (CGSpace) |
| description | The aim of this research is to ascertain whether Pakistan’s financial system is conducive to market disci-pline. We measure the potential of depositors to induce market discipline in the commercial banking sector. A comprehensive survey of over six thousand respondents was used to gauge their propensity to discipline bank management in response to deteriorating financial conditions. Our results portray that depositors are likely to withdraw funds in response to a reduction in profitability, an increase in non-performing loans, and a reduction in total assets. We identify that banks with better service quality are less sensitive to deposit withdrawals in the event of a reduction in their financial performance. Among other findings, the presence of contractual guarantees by the government desensitizes depositors to market information, making them less likely to be involved in imposing market discipline. |
| format | Artículo preliminar |
| id | CGSpace148136 |
| institution | CGIAR Consortium |
| language | Inglés |
| publishDate | 2016 |
| publishDateRange | 2016 |
| publishDateSort | 2016 |
| publisher | International Food Policy Research Institute |
| publisherStr | International Food Policy Research Institute |
| record_format | dspace |
| spelling | CGSpace1481362025-11-06T06:12:27Z Potential of market discipline in Pakistan: The bank depositors’ perspective Mirza, Nawazish Naqvi, Bushra Rizvi, Syed Kumail Abbas Rahat, Birjees market disruption capacity development banking markets credit financial policies finance The aim of this research is to ascertain whether Pakistan’s financial system is conducive to market disci-pline. We measure the potential of depositors to induce market discipline in the commercial banking sector. A comprehensive survey of over six thousand respondents was used to gauge their propensity to discipline bank management in response to deteriorating financial conditions. Our results portray that depositors are likely to withdraw funds in response to a reduction in profitability, an increase in non-performing loans, and a reduction in total assets. We identify that banks with better service quality are less sensitive to deposit withdrawals in the event of a reduction in their financial performance. Among other findings, the presence of contractual guarantees by the government desensitizes depositors to market information, making them less likely to be involved in imposing market discipline. 2016-04-15 2024-06-21T09:23:54Z 2024-06-21T09:23:54Z Working Paper https://hdl.handle.net/10568/148136 en Open Access application/pdf International Food Policy Research Institute Mirza, Nawazish; Naqvi, Bushra; Rizvi, Syed Kumail Abbas; and Rahat, Birjees. 2016. Potential of market discipline in Pakistan: The bank depositors’ perspective. PSSP Working Paper 40. Washington, DC: International Food Policy Research Institute (IFPRI). https://hdl.handle.net/10568/148136 |
| spellingShingle | market disruption capacity development banking markets credit financial policies finance Mirza, Nawazish Naqvi, Bushra Rizvi, Syed Kumail Abbas Rahat, Birjees Potential of market discipline in Pakistan: The bank depositors’ perspective |
| title | Potential of market discipline in Pakistan: The bank depositors’ perspective |
| title_full | Potential of market discipline in Pakistan: The bank depositors’ perspective |
| title_fullStr | Potential of market discipline in Pakistan: The bank depositors’ perspective |
| title_full_unstemmed | Potential of market discipline in Pakistan: The bank depositors’ perspective |
| title_short | Potential of market discipline in Pakistan: The bank depositors’ perspective |
| title_sort | potential of market discipline in pakistan the bank depositors perspective |
| topic | market disruption capacity development banking markets credit financial policies finance |
| url | https://hdl.handle.net/10568/148136 |
| work_keys_str_mv | AT mirzanawazish potentialofmarketdisciplineinpakistanthebankdepositorsperspective AT naqvibushra potentialofmarketdisciplineinpakistanthebankdepositorsperspective AT rizvisyedkumailabbas potentialofmarketdisciplineinpakistanthebankdepositorsperspective AT rahatbirjees potentialofmarketdisciplineinpakistanthebankdepositorsperspective |