Potential of market discipline in Pakistan: The bank depositors’ perspective

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cg.authorship.typesCGIAR single centreen_US
cg.authorship.typesCGIAR and developing country instituteen_US
cg.contributor.crpPolicies, Institutions, and Marketsen_US
cg.contributor.donorUnited States Agency for International Developmenten_US
cg.coverage.countryPakistanen_US
cg.coverage.iso3166-alpha2PKen_US
cg.coverage.regionSouthern Asiaen_US
cg.coverage.regionAsiaen_US
cg.identifier.projectIFPRI - Markets, Trade, and Institutions Divisionen_US
cg.identifier.projectIFPRI - Development Strategy and Governance Divisionen_US
cg.identifier.projectIFPRI - Pakistan Strategy Support Programen_US
cg.identifier.publicationRankNot rankeden_US
cg.number40en_US
cg.placeWashington, DCen_US
cg.reviewStatusInternal Reviewen_US
dc.contributor.authorMirza, Nawazishen_US
dc.contributor.authorNaqvi, Bushraen_US
dc.contributor.authorRizvi, Syed Kumail Abbasen_US
dc.contributor.authorRahat, Birjeesen_US
dc.date.accessioned2024-06-21T09:23:54Zen_US
dc.date.available2024-06-21T09:23:54Zen_US
dc.identifier.urihttps://hdl.handle.net/10568/148136en_US
dc.titlePotential of market discipline in Pakistan: The bank depositors’ perspectiveen_US
dcterms.abstractThe aim of this research is to ascertain whether Pakistan’s financial system is conducive to market disci-pline. We measure the potential of depositors to induce market discipline in the commercial banking sector. A comprehensive survey of over six thousand respondents was used to gauge their propensity to discipline bank management in response to deteriorating financial conditions. Our results portray that depositors are likely to withdraw funds in response to a reduction in profitability, an increase in non-performing loans, and a reduction in total assets. We identify that banks with better service quality are less sensitive to deposit withdrawals in the event of a reduction in their financial performance. Among other findings, the presence of contractual guarantees by the government desensitizes depositors to market information, making them less likely to be involved in imposing market discipline.en_US
dcterms.accessRightsOpen Accessen_US
dcterms.bibliographicCitationMirza, Nawazish; Naqvi, Bushra; Rizvi, Syed Kumail Abbas; and Rahat, Birjees. 2016. Potential of market discipline in Pakistan: The bank depositors’ perspective. PSSP Working Paper 40. Washington, DC: International Food Policy Research Institute (IFPRI). https://hdl.handle.net/10568/148136en_US
dcterms.descriptionThis working paper is an output from a CGP grant awarded in February 2013.en_US
dcterms.extent21 pagesen_US
dcterms.isPartOfPSSP Working Paperen_US
dcterms.issued2016-04-15en_US
dcterms.languageenen_US
dcterms.publisherInternational Food Policy Research Instituteen_US
dcterms.replaceshttps://ebrary.ifpri.org/digital/collection/p15738coll2/id/130277en_US
dcterms.subjectmarket disruptionen_US
dcterms.subjectcapacity developmenten_US
dcterms.subjectbankingen_US
dcterms.subjectmarketsen_US
dcterms.subjectcrediten_US
dcterms.subjectfinancial policiesen_US
dcterms.subjectfinanceen_US
dcterms.typeWorking Paperen_US

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