No abstract

Risk management became an important dilemma in the banking literature and has gained consideration since the financial crisis of 2007-08 which brought numerous challenges for most organizations. More than 325 banks' failure was reported in the United States during the worldwide financial crisis. The high number of banks failures needs to evaluate the risk management efficiency of banking institutions of Pakistan. In this study, we used the PVAR model and Simultaneous equation approach to examine the link between Liquidity Risk and Credit Risk and its influence on banks' performance working in Pakistan. The panel data was collected from 33 banking institutions between the period 2008-2018. The results revealed that Credit Risk and Liquidity Risk are not interrelated with each other. However, the two risks independently influence the banks' performance and their relative interaction plays a major role in the instability of the banking sector. The findings form the foundation for recent regulatory exertions to better understand the two types of risks and to strengthen the joint management of both liquidity risk and credit risk.

The commercial banks remain one of the important keys of financial intermediaries that provides Variety of services in the economy over the states around the world, therefore this paper aims to investigate the profitability of Jordanian commercial banks in Jordan. The effect of internal and external determinants of Commercial Jordanian Banks profitability has been studied in this paper, the paper utilized of annual time series both internal and external data of these determinants for the period 2008 to 2018. Using the time series analysis and panel data techniques to measure the impact of these determinants, the sample consists of 21 Banks, followed for 14 years the quantitative method in this paper focuses on the statistical. The R 2 determinants within are 64% and LSD R 2 is 76% thus in both R 2 the independent variables interpret the changes which happen in ROE, and the R 2 is good to do this the analysis and lags depend on Hanan-Quinn which is 67.72042. The groups have a common intercept and the LSDVF 3.658 is > than P-value we reject the null hypothesis, and accept the alternative hypothesis that there is a relationship between ROE and vector of (bank specific). Results indicate that for bank-specific which consist of four variables such as, credit risk, equity, loan, saving the deposit. Where the industry-specific consist of market concentration, and also the macro-economy, determinates include: GDP Per capita, lending interest rate, inflation-unemployment ratio, Total Government revenue / GDP. Money supply 2. The analysis shows that bank-specific has a positive significant sign to bank profitability. While the market concentrates have appositive effects. Meanwhile, the macroeconomic variables are beyond the scope of management control and show appositive signs.

The research investigated the determinants of Pakistan’s exports by using time series data from 1990–2016. Certain econometric tests were also applied to check cointegration among variables. A unit root test was used to check the stationarity of selected variables. After the stationarity of the data, a vector error correction model is used to estimate the effect of regressors, like foreign direct investment, gross domestic product, employment level, and consumption expenditures on a dependent variable, i.e. exports in the short run. The result shows the positive relationships that foreign direct investment, gross domestic product and employment level have on exports, and the adverse impact of consumption expenditures on the dependent variable. The study uses Johansen’s cointegration test for the long run. The results show that all the variables are co‑integrated in the long run. It is suggested that the government should encourage foreign direct investment and gross domestic product, which would help accelerate Pakistan’s exports. It is also suggested that whenever policymakers provide a trade policy, in particular, in relation to exports, then the adverse effect of exchange rate depreciation, external debt burdens, taxes, sanctions and protectionism should be quantified, and necessary measures be suggested so as to minimize any repercussions.