Izvorni znanstveni članak
https://doi.org/10.1080/1331677X.2021.1993951
Sustainable banking regulations pre and during coronavirus outbreak: the moderating role of financial stability
Sitara Karim
Muhammad Umair Akhtar
Rubeena Tashfeen
Mustafa Raza Rabbani
Abdul Aziz Abdul Rahman
Amani AlAbbas
Sažetak
With the worldwide dispersion of COVID-19, banking sector,
among others, needs to adapt to unexpected challenges. For this
purpose, this study examines the impact of sustainable banking
regulations on bank-specific characteristics pre and during COVID19 period in Pakistan for the period spanning from 2006 to 2020.
Moreover, financial stability is employed to test its moderating
role on sustainable banking regulations. The dynamic estimator,
named the system-Generalized Method of Moments, is used to
analyze the endogenous nature of the data. Findings suggest that
capital adequacy ratio, deposit ratio, and loan ratio are positive
whereas leverage ratios are negatively related to profitability and
market return. Overall, findings reveal that sustainable banking
regulations influenced the bank-specific characteristics substantially. Importantly, the year-wise averages of variables reveal that
Pakistani banks have made significant improvements in profitability, market return, capital adequacy, and deposit ratio pre and
during pandemic era. Additionally, the financial stability significantly moderates the relationship highlighting lower default risk
and the effectiveness of sustainable banking operations.
Practically, despite global lockdowns, economic and trade restrictions during COVID-19, State Bank of Pakistan, sustained health of
banking sector through its well-regulated monitoring mechanism.
Ključne riječi
adequacy ratio; COVID-19; State Bank of Pakistan; sustainable banking regulations
Hrčak ID:
302603
URI
Datum izdavanja:
31.3.2023.
Posjeta: 831 *