Abstract

The study will examine the performance of Islamic and conventional banks in Pakistan, as well as the impact of concentration on bank efficiency. The structure conduct and performance method is a structural method and the theory of this model holds that the level of profits acquired by the bank is influenced by market structure and the degree of competition. The data for Islamic and conventional have been taken from financial reports of 4 Islamic and 4 conventional banks for the period of 2006 to 2020. PLS regression method has been applied which is then verified with the help of the Breusch-Pagan test and analysis further tested fixed and random effect models which were verified with the help of the Hausman test. The finding of the study confirmed the significant relationship between HHI and CR with Performance indicators (ROA, ROE, NIM, and NPM) of both banking systems. However, the ROE of conventional banks was observed non-significant with Concentration variables.

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