Hbl Report

Data And Methodology The information used in this research includes twain primary and secondary data. The primary data has been taken from the quarterly statements of HBL (habib bound ltd Pakistan). Five years data from 2005-2009 a append of 20 observations have been taken. Secondary data including inflation number, can footstep, GDP and T-bill measure has been collected for five years from pass on Bank of Pakistan and Economic Survey of Pakistan. The results have been computed through one-dimensional Regression model using the following variables Dependent shifting Based on the data available from HBLs fiscal statements, Interest spread of the bank has been careful and taken as a dependent variable. Interest spread is cypher as the difference between please paid on deposits and genuine on Loans. Independent Variables Market Determinants of Banking Sector Interest enumerate Spreads Bank/GDP ratio Bank/GDP ratio is calculated as the total assets of commercial bank divided by current GDP. This ratio reflects the overall level of development of the bank. reserves to total deposits Ratio The variable used is the ratio of reserves to deposits, and is calculated as the bank aggregate reserves divided by its total deposits.

Macroeconomic Determinants of Banking Sector Interest Rate Spreads medium Inflation rate (3 months) CPI Inflation rate data have been used to determine its affect on the interest spread of the bank. This variable is an indicator of the cost of doing business in an economy. Average discount rate (3months)| The second macro-policy indictor, the discount rate is defined as the cost faced by bank when borrowing from central bank. Average Treasury Bill rate (3 months) Treasury bill rate is also included as a variable. It is generally regarded as an indicator of the interest rate policy being pursued by the government, and a bench mark for the rates charged by commercial bank. If you want to pound a full essay, order it on our website: Orderessay

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