Pakistani Banking Research Articles

Spatial Modesty: The Everyday Production of Gendered Space in Segregated and Assimilative Organizations

AbstractThis article explores the relations between organizational spatiality, gender and religion‐informed cultural practices. Theoretically grounded in Lefebvre's spatial theory and informed by Islamic feminism, it examines the significance of Islamic spatial modesty in (re)constructing and sustaining gender (in)equalities in financial institutions in Pakistan. The analysis reveals that the work‐space of Pakistani banks is gendered in ways that reflect the practices of purdah (Islamic modesty), while being adjusted and resisted to fit with the cultural practices of the organization, in what we call ‘selective appropriation of spatial modesty’. The article advances gender and organizational space scholarship by critically assessing Lefebvre's theory of space through the lenses of Islamic feminism and offers a cultural‐religious understanding of space theory.

Compliance with anti-money laundering laws and their impact on banking operations in Pakistan: banking expert’s opinion

Purpose Despite sound anti-money laundering (AML) regulations and membership in the financial action task force, money laundering remains a severe concern faced by Pakistan because of its weak AML regime. This led to an investigation of the perceptions of banking expert’s regarding the AML law’s costs and complexity, mapping of compliance cost and measures taken by Pakistani banks in compliance with AML laws. Design/methodology/approach A socio-legal study approach was adopted based on library-based, and interviews using social media platforms to treasure the experts’ opinions regarding the impact of AML laws on baking operations in Pakistan. A semistructured interview-based questionnaire was handed out to Pakistani banking officers. Findings The findings revealed that, for banks to meet the AML obligation, they must overcome challenges including cost and complexity. Nevertheless, these costs are less expensive than the penalties assessed for noncompliance. Practical implications Following AML regulations can help the banking industry grow, which, in turn, attracts more foreign investment by boosting consumer confidence. However, it is difficult and expensive to comply with these requirements. The current research hopes that the financial regulatory authorities of Pakistan will adopt more effective measures for efficient compliance with AML laws. Originality/value The impact of compliance with AML laws on banking operations in Pakistan was examined in this study for the first time using banking officers’ opinions from various banks best of author’s knowledge.

Evaluating the Influence of Basel Accord on Banking Sector of Pakistan

The papers aim to investigate how Basel III affected Pakistan's entire banking sector from 2013 to 2018. The requirements and obligations of Basel III are regarded as the most efficient tools for the banking sector. When analyzing the impact of Basel III on the banking industry, three primary considerations are made: financial size, spread, and provision for non-performing loans. Relapse investigations were utilized for checking speculation. We inferred that the general pummel of Basel III on banks is enormous, yet not all banks have totally taken on Basel III. The significance of this research lies in giving important experiences into the viability of global regulatory structures in rising economies' potential. By evaluating the Basel Accord's effect on Pakistan's banking sector, this study adds to a more extensive comprehension of how worldwide guidelines can be adjusted to neighborhood settings and how they can address explicit challenges faced by banks in emerging nations. This analysis not only reveals insight into the operational and vital changes made by Pakistani banks but also gives suggestions for policymakers to upgrade regulatory practices and monetary strength. Eventually, this research aims to illuminate future regulatory changes and work on the flexibility of Pakistan's banking sector in the face of worldwide monetary uncertainties. We propose highlighting semiannually the effects of Basel on the banking industry and conducting a comparison analysis of conventional and Islamic banks.

Understanding customer’s intention to adopt metaverse banking services in Pakistan: a qualitative study

Purpose The emergence of metaverse banking services (MBS) enables customers to interact and socialise in a virtual environment. However, there is a lack of research on MBS adoption. This study aims to examine the key factors influencing customer behaviour in adopting MBS, with a specific focus on Pakistan as a developing country. Design/methodology/approach Semi-structured interviews were conducted with 22 Pakistani banking customers, and the resulting data were transcribed and subjected to thematic analysis using NVivo software. Findings This qualitative investigation into the determinants of MBS adoption encompasses a wide range of facilitators, inhibitors and customer resources. These findings ultimately contribute fresh perspectives to the field, challenging prevailing beliefs and offering new insights into the complex dynamics driving customer behaviour in the MBS context. Research limitations/implications Since this study only focused on Pakistan with a limited scope, future studies on MBS adoption would benefit from a comparative analysis across several countries, especially in Asian nations. Practical implications This study advances our understanding of MBS adoption by revealing key determinants of customer intentions. Moreover, it offers actionable guidance for banking professionals, marketers and policymakers to navigate the implementation of MBS and unlock promising avenues for growth and innovation. Originality/value The first scholarly inquiry into MBS adoption seeks to expand extant knowledge by elucidating customers' viewpoints, thereby revealing novel insights into the key factors that influence customer behaviour within the MBS landscape.

Institutional logics in play at work: how applying an institutional logics approach to employees’ intentions to quit contextualizes HRM

Organizational and human resource management (HRM) scholars have shown an increasing interest in examining how macro-level institutions influence individuals’ behaviour, frequently adopting an institutional logics perspective. This approach encourages a holistic perspective, highlighting the multiplicity of logics within organizations. However, HRM studies that adopt an institutional logics approach often focus on just two logics (profession and HRM), downplaying other logics that influence individuals, and not fully assessing how a HRM logic plays out in organizations. Based on 54 interviews with Pakistani banking employees, we find that their perceptions of HRM effectiveness only partially explain their turnover intentions. Several logics (HRM, traditional leadership, corporation, professional, family, and religious logics) and their associated values are in play at work, and help to explain how HRM influences employees’ intentions to quit. Consequently, we contend that the HRM literature that applies an institutional logics approach downplays the multiplicity of institutional logics embedded within local contexts, and overlooks how various institutional logics and their constituent values shape individuals’ behaviour. Thus, this article highlights the importance of contextualizing HRM policies, ways for HRM research to fully benefit from the institutional logics approach, and the role of values in shaping employees’ responses to enacted HRM policies.

Authentic leadership – a source of tacit knowledge sharing and career competence in service sector

PurposeThis study aimed to examine the correlation between authentic leadership and career competence, exploring the mediating roles of tacit knowledge sharing and employee service innovative behavior.Design/methodology/approachData were collected using convenience sampling and a time-lagged design from the Pakistani banking sector. The time-lagged design was employed to gather data at two different points in time. SPSS statistical software was used for descriptive analysis, and hypotheses were tested using Mplus.FindingsThe results demonstrate that authentic leadership has a significant positive impact on tacit knowledge sharing. This knowledge sharing, in turn, positively impacts employee service innovative behavior, which subsequently enhances career competence. Furthermore, tacit knowledge sharing mediates the relationship between authentic leadership and employee service innovative behavior.Social implicationsThis study has social implications for organizations aiming to align their inclusive goals with societal needs. The findings can help foster a culture of knowledge sharing, thereby contributing to societal innovation.Originality/valueThis study provides valuable insights into how authentic leadership contributes to career competence, thus enriching the existing literature on this topic.

The role of financial literacy in enhancing firm’s sustainable performance through Fintech adoption: a moderated mediation analysis

Purpose This study aims to explore the intricate relationship between financial literacy, digital transformation, Fintech adoption, competitiveness and sustainable firm performance, particularly focusing on how financial literacy empowers firms in the evolving digital landscape. Leveraging technological innovation systems (TIS) and resource-based view (RBV), this research suggests a model that incorporates these concepts, focusing on the moderating role of financial literacy in essential interactions. Design/methodology/approach This study employed a survey-based methodology, collecting data from employees across five major Pakistani banks. The survey yielded 426 responses, from which 387 valid ones were selected for analysis. The analysis utilized partial least squares-structural equation modeling (PLS-SEM), complemented by the Hayes Process Model for moderated mediation analysis. This approach ensured robust examination of the relationships between the constructs of the proposed model. Findings The study's findings validate that digital transformation significantly enhances sustainable performance, with Fintech adoption and competitiveness acting as crucial mediators. Financial literacy is highlighted as a key moderator, influencing the effects of digital transformation on Fintech adoption and competitiveness, although its direct impact on sustainable performance is less pronounced. This comprehensive analysis underscores the complex interplay among these factors in driving sustainable performance in the banking sector. Originality/value This research enriches the theoretical and practical comprehension of how digital transformation and Fintech integration, underpinned by financial literacy, bolster sustainable business outcomes. It sheds light on the synergy between technology, strategy and organizational success, offering key insights for the banking industry's navigation through the digital era's challenges.

The power of governance: unraveling the influence of voluntary disclosure on bank’s value in Pakistan

PurposeThis study aims to examine the influence of voluntary disclosure on bank value in Pakistan, considering the moderating effect of corporate governance characteristics: ownership control, board independence and board size.Design/methodology/approachThe study uses data from 20 listed Pakistani banks for the period 2011–2021. The estimation contains robust fixed effect and its assumptions, and a model of standard error with panel corrections.FindingsThe findings revealed a weak positive impact of voluntary disclosure on bank value. However, the increase in the number of independent directors strengthens the positive impact of voluntary disclosure on a bank’s value. Conversely, increasing the ownership concentration, and board size (other than independent directors) may strongly decrease the impact of voluntary disclosure on a bank’s value in Pakistan.Research limitations/implicationsThe study’s limitations include its exclusive focus on the Pakistani banking industry. Future research should take into account newer contexts and data. The findings suggest that future research should investigate the topic in various contexts, including a comparison of Islamic and conventional banks.Practical implicationsThe practical implications for Pakistani banks emphasize transparency, board composition and ownership structure. In terms of managerial implications, using independent directors, aligning ownership interests and addressing disclosure challenges are highlighted.Originality/valueFocusing on independent directors, ownership concentration and board size, this study enhances knowledge of the impact of voluntary disclosure on bank value in Pakistan. It contributes to agency theory and the literature in this domain.

Leadership Styles and Conflict Management in Pakistani Banks: The Role of Conflict Behaviors

Leadership Styles and Conflict Management in Pakistani Banks: The Role of Conflict Behaviors

Leadership Styles and Relationship Conflict in Pakistani Banks: Exploring the Moderating Roles of Trust, Emotion, and Clarity

This study aims to explore the moderating impacts of cognitive trust, emotion regulation, and role clarity on the relationship between different leadership styles—transformational, transactional, and laissez-faire—and relationship conflict within the Pakistani banking sector. The objective is to understand how these moderating variables influence the dynamics between leadership approaches and interpersonal conflicts in a high-stress, compliance-driven environment. A quantitative research design was employed, targeting non-managerial staff across five major private banks in Pakistan. Data were collected through a self-administered survey using both digital and printed questionnaires. The survey assessed various constructs, including leadership styles, relationship conflict, cognitive trust, emotion regulation, and role clarity. SmartPLS 4 software was used to evaluate the measurement model and to test the hypothesized interactions between the variables. The analysis revealed that cognitive trust significantly moderated the relationship between transformational leadership and relationship conflict, suggesting that higher levels of trust can reduce conflicts in transformational leadership contexts. However, cognitive trust did not significantly moderate the effects of transactional and laissez-faire leadership on relationship conflict. Role clarity was found to be a critical moderating factor, effectively reducing relationship conflict across all three leadership styles, indicating its importance in providing clear expectations and reducing ambiguity in the workplace. Emotion regulation also played a significant moderating role in both transformational and transactional leadership, helping to mitigate relationship conflicts. However, it did not significantly moderate the relationship between laissez-faire leadership and relationship conflict. The findings underscore the importance of fostering cognitive trust, enhancing emotion regulation skills, and ensuring role clarity in organizational settings, particularly within the banking sector. By focusing on these moderating factors, organizations can better manage the adverse effects of different leadership styles on relationship conflicts, thereby improving overall team cohesion and productivity. This study provides valuable insights into the complex interplay between leadership styles and relationship conflict in a culturally specific context. It highlights the critical roles of cognitive trust, emotion regulation, and role clarity as moderating factors that can enhance leadership effectiveness and conflict management in the Pakistani banking sector.

Determinants of Bank’s Financial Stability in Pakistan

The purpose of this study is to investigate the role of both internal and external factors in achieving better stability in context of Pakistani banking industry. The internal determinants that this research study have used are bank size, funding risk, liquidity risk, credit risk and return on assets while external variables utilized includes money supply and unemployment rate. The study contains 10 years secondary data over the period 2013-2022 of 24 commercial banks of Pakistan. This study conducted correlation analysis and GMM model estimation for analysis. The findings show that liquidity risk, bank profitability, funding risk and bank size have positive and significant impact on bank stability. On the other hand, credit risk effects negatively bank stability. The result showed that money supply positively affects the stability of banks in Pakistan. On the contrary, unemployment is negatively affecting banks stability. The findings of this study have important implications for policymakers, regulators, banks, investors, and other stakeholders in the Pakistani banking sector. By enhancing the understanding of the factors influencing bank stability, the research contributes to identifying the importance of development of evidence-based policies, risk management strategies, and regulatory reforms aimed at development of a stable and resilient banking system in Pakistan.

Leadership and Employee Analysis A Case Study of Pakistani Banking Industry

This research examines how leadership, motivation, and training affect job satisfaction and performance in a corporation. This inquiry seeks to discover how firms may boost employee productivity and pleasure by evaluating these attributes. We will utilize surveys to collect primary quantitative data from workers. This research seeks to understand these elements' connections and causalities. Businesses are continuously looking for new methods to boost employee productivity and job satisfaction. Due to the competitive and complex business climate today. It is crucial to consider these two interconnected traits since they directly affect a company's performance, productivity, and profitability. These concerns must be followed. Training, motivation, and leadership are considered the most essential variables affecting employee performance and work satisfaction. These components are considered most crucial. After measuring and analysing these three independent variables, this study found that these are the key factors. Understanding how these components interact and contribute to results can help companies design more effective personnel management and development strategies. This knowledge will help firms improve personnel management and development initiatives. This is possible because you must understand how these components interact. Training is considered essential to worker development. This is because training gives worker’s new skills and experiences.

Leveraging Digitalization and Servitization to Improve Financial Performance: An Empirical Analysis

This research investigates the interplay between digitalization, servitization, and Corporate Social Responsibility (CSR) in influencing the financial performance of Pakistani banks. The study addresses a critical gap by examining how these factors combine to impact bank profitability in the contemporary landscape of digital transformation and evolving customer demands. A quantitative approach is employed, utilizing survey data collected from branch managers in Pakistani banks. Standardized scales measure digitalization, servitization, CSR, and bank performance. The findings demonstrate a positive direct effect of digitalization on bank performance. Furthermore, servitization strengthens this positive impact, suggesting that banks offering a comprehensive suite of services alongside traditional products achieve superior financial outcomes. Notably, the study reveals no significant short-term contribution of CSR to a bank's financial performance. Thus, the study sheds light on the crucial role of servitization in amplifying the positive effects of digitalization on bank performance. By strategically integrating services with products, banks can leverage digital technologies to become more data-driven and enhance their financial health.

The Causal Linkages between Market Power and Cost Efficiency: Testing Quiet Life Hypothesis for the Banking Industry

This study aims to test the quiet life hypothesis considering the impact of market power on cost efficiency in Pakistani banks where managers of the banking industry slacken their efforts to enjoy a ‘quiet life’ due to market power and are not focused on the cost efficiency of their banks. Thus, banks with high market power are relatively less focused on the efficient allocation of resources, resulting in a loss of consumer surplus and efficiency. We take panel data for a sample of 25 commercial banks throughout 2006-2019. Our findings suggest Uni-directional causality running from cost efficiency towards market power in the case of Pakistan. In addition, to control for endogeneity, we adopt a dynamic two-step system GMM approach to model the relationship between market power and cost efficiency. Our findings suggest significantly negative effects of cost efficiency over market power, disproving the presence of quiet life in the case of Pakistan. This study provides substantial theoretical contributions in the form of the Quiet life hypothesis and welfare performance of banks. However, to the best of our knowledge, the causal linkages and the effects of market power on cost efficiency or vice versa are not documented for the banking industry of Pakistan.

The mediating role of stakeholders on green banking practices and bank's performance: The case of a developing nation.

The banking sector serves as a nudge between increased financial investments and reduced environmental impacts in the modern era of sustainability thus, integrating the social, environmental, and economic dimensions. This paper aims to explore the practices and ongoing activities on account of sustainable banking which is being practised in the Pakistani Banking Sector. A mixed methods approach using a survey with a sample size of (n = 250) and in-depth interviews of (n = 25) provides significant evidence for the research. SmartPLS4.0 was used for hypotheses testing and to ascertain the path coefficient association within the constructs. This research fills the gap in existing literature by testing and implying the mediating role of Stakeholders' Influence on the relationship between Green Banking Practices and the Bank's Performance. The results of the quantitative analysis show a positive association between variables, highlighting the role of stakeholders and their need to partake efficiently, in the countrywide execution of green banking. The qualitative analysis portrays that; green banking is currently the partial focus of the banking sector in the developing economy of Pakistan whereas, approaches like financing green projects, investments in renewable energy, in-house greening of the banking sector, and provision of easy lending facilities to encourage and support environmental initiatives are some commonly practised accomplishments of the banking sector.

Why Female Presence on Boards is Often Ignored in Firms? Empirical Evidence from Emerging Economies

The study examined the effect of the presence of female directors in the board and other board characteristics like board size, independence of directors, CEO duality, and meetings attended by directors. The Panel data analysis is used by taking a sample of 21 Pakistani banks and 52 Chinese banks. The results of this study reveal that some board features like board size and independence of directors have a significant effect on banks’ performance both in Pakistan and China. But other board variables like CEO duality and female director presence have insignificant impact on the performance of Pakistani and Chinese banks. These results are consistent with earlier studies.

Implications of corporate social responsibility on the financial and non-financial performance of the banking sector: A moderated and mediated mechanism

This study aims to investigate the influence of corporate social responsibility (CSR) on both financial and non-financial performance in the Pakistani banking sector by applying a quantitative research approach to the primary data from 405 branch managers in the Pakistani banking sector. Both financial and non-financial performance indicators are analyzed in relation to CSR practices. The CB-SEM findings of this study reveal a significant and positive correlation between CSR and both financial and non-financial performance. Our results demonstrate that CSR initiatives contribute to improved financial performance, reputation, and innovation within the sector. These findings confirm the importance of prioritizing social responsibility initiatives to enhance overall performance in the banking industry. This study provides valuable insights into the impact of CSR on performance in the context of the Pakistani banking sector. The research contributes to the existing literature by highlighting the positive relationship between CSR and financial/non-financial performance. The findings underscore the relevance of CSR practices for banks in Pakistan and emphasize the potential benefits of incorporating social responsibility initiatives into their operations. This study serves as a foundation for future research, encouraging further exploration of CSR's role in the banking industry and its implications for sustainable business practices.

Get advanced or retreat: well-informed board and bank risk-taking

PurposeThis paper aims to examine the relationship between board structure and risk-taking, exploring how this association is influenced by advanced technologies in the banking sector.Design/methodology/approachThis study uses a panel sample of 22 Pakistani banks from 2011 to 2018. To test the authors’ hypothesis, the authors use regression analysis with two-way cluster robust standard errors. Further, the authors also check the robustness of the authors’ findings using alternate proxies of board structure and bank risk-taking behavior. To address endogeneity concerns, the authors use the two-stage least square technique.FindingsIn the era of the Fourth Industrial Revolution, Pakistani banks’ digitalization is modeled by the presence of Temenos-T24/Oracle as their core banking system (software providing end-to-end operational integration). Its interactional effect with corporate governance is evaluated to implicate informed risk-taking by the board as a result of improved information access and analysis. The authors find that board size has a positive association with risk-taking, and the use of modern technology reshapes this association in the banking sector.Originality/valueThe contribution of this paper is twofold. First, the impact of board structure on bank risk-taking has not been extensively researched in Pakistan – a highly volatile and unpredictable economy. Second, the evaluation of the role of technology on bank risk is being researched for the very first time – a uniqueness of this paper.

A Comparative Study between Growth of offering supply chain finance with Non-offering Banks in Pakistan.

This study empirically examines a comparative study between banks growth of offering supply chain finance with Non-offering Banks in Pakistan. This study used dynamic generalized method of moments (GMM) technique, based on 22 Pakistani Banks (10 offer supply chain finance and 12 non-offering supply chain finance) data during 2012-2022. The results show a significant difference between banks growth by offering and non-offering supply chain finance. Furthermore, the results show a significant positive impact of banks growth with supply chain finance on banks financial performance. This study encourages banks to offer supply chain finance that contributes towards their growth and financial performance.

Green Banking in Pakistan: A Qualitative Study

In the face of escalating global warming, the call for transformative action becomes increasingly urgent. As industries and consumers grapple with the imperative of environmental stewardship, the banking sector takes centre stage in the journey towards a sustainable future. Green Banking is a ground-breaking shift aimed at harmonizing financial practices with ecological imperatives. This study delves into the evolving landscape of Green Banking within Pakistan, investigating its impact on customer engagement and institutional viability. Through qualitative research methods, interviews with key stakeholders from leading Pakistani banks unveil a nuanced interplay of challenges and opportunities. While initial reservations and differing viewpoints persist among stakeholders, a growing consensus emerges regarding the inherent benefits of Green Banking. Drawing upon theoretical frameworks including theory of planned behaviour, ecological consumerism, innovation diffusion theory, and prospect theory, our analysis highlights the increasing allure of Green Banking initiatives for Pakistani banks. Despite enduring obstacles, our findings underscore the necessity for Pakistani banks to embrace and advocate Green Banking, not only as a moral obligation but also as a strategic imperative for maintaining market relevance and sustainability.