SEISENSE Journal of Management
Vol. 2 No. 4 (2019): SEISENSE Journal of Management

Role of Credit Information Sharing and the Funding Cost of Banks: Evidence from the Top Ten “AA Rating” Commercial Banks of Pakistan

Ramzan Ali (University of Lahore, Pakistan)
Sami Ullah Butt (Superior University, Lahore, Pakistan)
Zahir Zahid Butt (Superior University, Lahore, Pakistan)
Shahid Manzoor Shah (University of the Lahore, Pakistan)
Fiaz Ahmad Sulehri (University of the Lahore, Pakistan)



Article Info

Publish Date
23 Jun 2019

Abstract

Purpose - The objective of the study is to investigate the relationship between the credit information sharing and the funding cost of banks of the top ten “AA rating” commercial banks of Pakistan as the Commercial banks also play a significant role in the economy of every country. Design/Methodology - In this study, panel data were analyzed from 2011 to 2017. We selected the top ten “AA rating” banks from Pakistan credit rating agency (PACRA) website, and data related to another related variables are obtained from financial statements of the respective banks. Generalized Method of Moments (GMM) statistical technique was employed to measure the relationship among related variables. Findings - The result of the study shows that there is a negative and significant relationship between credit information sharing, operation efficiency, and funding cost. On the other side, profitability has a positive and significant relationship with the funding cost of the bank. Practical Implications - To manage the funding cost policymakers must focus two key findings which are credit information sharing and operational efficiency of bank and set up a credit information sharing institutions which help to reduce information irregularity and ultimately manage the funding cost of the banks.

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Journal Info

Abbrev

jom

Publisher

Subject

Economics, Econometrics & Finance Social Sciences

Description

SEISENSE Journal of Management (SJOM) peer-reviewed and published as Bi-Monthly (six issues in a year), is committed to publishing scholarly empirical and theoretical research articles that have a high impact on the management field as a whole. SEISENSE JoM covers domains such as Business strategy & ...