Impact of Financial Liberalisation and Deregulation on Banking Sector in Pakistan

The study analyses market perception about the performance of Pakistani commercial banks due to financial liberalisation and deregulation measures taken by the central bank over the last two decades. For this purpose, it uses Survey approach. To augment the results of Survey Based Approach, it employs Distribution Free Approach to measure relative cost inefficiencies of commercial banks. Out of 35 commercial banks, 15 banks have been chosen for analysis purpose. Key banking reforms remain helpful in correcting flaws in the banking sector of Pakistan. In particular, privatisation of banks, the deregulation and institutional strengthening measures and switching towards market-based monetary and credit management remain helpful in correcting the prevailing flaws. The cost inefficiency scores of banks also indicate that the efficiency of Pakistani banks have improved during 1990 to 2006. As regards group-wise efficiency estimates, foreign banks are found to be more efficient, followed by private banks, nationalised commercial banks, and privatised banks. The relative high cost inefficiency of privatised banks is most probably due to having remained under state owned structure during most of the period of the study. The financial liberalisation and the resultant competitive environment might be the key factors behind improvements in efficacy of banks.Banking, Efficiency, Regulations, Financial Reforms

Impact of Financial Liberalisation and Deregulation on Banking Sector in Pakistan

The study analyses market perception about the performance of Pakistani commercial banks due to financial liberalisation and deregulation measures taken by the central bank over the last two decades. For this purpose, it uses Survey approach. To augment the results of Survey Based Approach, it employs Distribution Free Approach to measure relative cost inefficiencies of commercial banks. Out of 35 commercial banks, 15 banks have been chosen for analysis purpose. Key banking reforms remain helpful in correcting flaws in the banking sector of Pakistan. In particular, privatisation of banks, the deregulation and institutional strengthening measures and switching towards market-based monetary and credit management remain helpful in correcting the prevailing flaws. The cost inefficiency scores of banks also indicate that the efficiency of Pakistani banks have improved during 1990 to 2006. As regards group-wise efficiency estimates, foreign banks are found to be more efficient, followed by private banks, nationalised commercial banks, and privatised banks. The relative high cost inefficiency of privatised banks is most probably due to having remained under state owned structure during most of the period of the study. The financial liberalisation and the resultant competitive environment might be the key factors behind improvements in efficacy of banks.Banking, Efficiency, Regulations, Financial Reforms

Yefet ben 'Ali's commentary on the Hebrew text of the Book of Job I-X

This thesis is a critical edition of the Judeo-Arabic commentary on the Hebrew text of the Book of Job by one of the greatest Karaites of his age (second half of the tenth century A. D.), Yefet Ben 'Ali the Karaite. An examination of the photocopies and microfilms of the original Manuscripts of Yefet Ben 'Ali written in the XIth, XIV-XVIIth, XVth and XVIth centuries resulted in a delimitation of the number of chapters in this edition i.e. chapters I-X. None of the four Manuscripts is complete and I have tried to complete the presentation of the first ten chapters of Yefet's commentary on the Book of Job by filling in the gaps of the master copy which I used (Ms. A., Or. 2509 B. M. ) from the other Manuscripts. I used it as a main text because it is almost a complete copy compared with the others, as far as the first ten chapters are concerned. The four Manuscripts which I used are housed in the British Library in London. This edition is prefaced by an introduction, comprising a discussion of the information we possess about Yefet's life in Basrah and Jerusalem, with reference to his works in general and the authenticity of his work on the Book of Job in particular. This is followed by a description and analysis of the commentary, discussing the method used by the commentator, and how he made it possible for large numbers of Jews in non-Arabic speaking countries to make free use of his interpretations of biblical texts allied to the Karaite theological viewpoint and its relationship to Mu'tazilite views. There follows an analysis of the language used by Yefet in his text and exegesis, i.e. morphology, orthography and so on. A comparison is then made with Saadia Gaon, including a brief discussion of the language and exegesis of the two scholars which deals with the fundamental characteristics of Judeo and classical Arabic; in addition, notes on the text are appended in which attention will be drawn to Yefet's characteristic vagueness in interpreting the Hebrew text of the Book of Job. Special attention is paid to the vowels in each of the Manuscripts, and differences between the Manuscripts are footnoted throughout the text of this edition. The appendix takes cognisance of M. E., i.e. Opp. Add. 4.165 of the Bodleian Library, listing fully the differences between it and the printed text of this edition

The Effect of Foreign Bank Presence on Domestic Banks Performance: An Evidence from a Developing Economy

This study examines the effect of foreign bank presence on the behaviour of domestic banks by using the annual data of 37 commercial banks comprising of 7 foreign and 30 domestic banks for the time period of 2007 to 2011, to investigate the effect of foreign bank presence  five banking ratios, net interest margin, return on assets, overhead, cost to income and nonperforming loans using panel regression analysis employing bank specific fixed effect model. As a developing country case, the results suggest that the increase in foreign bank share effects the interest margins and profitability of domestic banks in a decreasing manner. It wouldn't be erroneous to express that foreign banks have a positive effect on the competitive environment of domestic banks increasing overall banking standard in Pakistan, the licensing policies should be further liberalized to let new entrants further improve the domestic financial intermediation system.&nbsp

Competition and market contestability of banks: evidence from emerging financial market

The study is an attempt to investigate the nature of competition and market contestability of 35 Pakistani banks for the period of 2007-2011 by employing Panzar and Rosse (PR-model). The test of competition overall sample (2007-2011) suggest that banks in Pakistan in state of monopolistic competition and market is in equilibrium. The sub sample (2007-2009) result of competition and equilibrium are similar as for sample period (2007-2011) suggesting that revenue produced during this period is state of monopolistic competition. Finally the results of sample period (2010-2011) suggest that banks in Pakistan are instate of perfect competition however, the market in not in long-run equilibrium. The results have interesting policy implications; it is suggested to encourage the foreign banks presence to improve the competitive condition of banking industry so that to ensure the exit and entrance of banks in the industry to increase the competition and produce the variety of product to improve banks performance and customer satisfaction.&nbsp