FINANCIAL TECHNOLOGY'S IMPACT ON THE NON-PERFORMING LOANS HELD BY COMMERCIAL BANKS IN PAKISTAN

Ahmad Zeb (Corresponding author); Anam Ashraf; Sara Israr; Dasrat Rai Meghwar

doi:10.71146/kjmr175

Authors

Ahmad Zeb (Corresponding author) Lecturer, Department of Management Science, Islamia College, Peshawar, Pakistan. Author
Anam Ashraf Lecturer, Grand Asian University, Sialkot. Author
Sara Israr MPhil Economics, Pakistan Institute of Development Economics, Islamabad. Author
Dasrat Rai Meghwar Department of Commerce and Management,University of Sindh Jamshoro. Author

DOI:

https://doi.org/10.71146/kjmr175

Keywords:

Non Performing loans, Financial Technology, Pakistan, Commercial Banks

Abstract

The aim of this research is to examine how financial technology affects a commercial bank's nonperforming loan ratio. Data for this research was gathered from 15 Pakistani commercial banks using the purpose sampling approach. An index is used to assess banks' financial technology. The two control variables are GDP growth and inflation. The outcome demonstrates that the percentage of non-performing loans at banks is significantly improved by financial technology activities. As financial technology advances, Pakistan's commercial banks' nonperforming loan ratio rises. Since financial technology is enhancing banking performance, the State Bank of Pakistan need to establish rules for the adoption of financial technology by all banks and give a certain amount of investment. This study helps new academics understand the significance of financial technology in the banking industry. This research adds to the body of knowledge on financial technology in relation to commercial banks.