Impact of Mobile Remittances on the Performance of Banks in Pakistan: A Panel Data Analysis

The research aimed to explore the effect of a new technological development, Mobile
Remittance, on the profitability of Pakistani banks. For this purpose five bank’s data have been
chosen over the period of 5 years, i.e., from 2009-2013. Return on Assets is used as the proxy for
measuring bank profitability. The empirical result of this study show that mobile remittances, offbalance
sheet activities and capital adequacy ratio have a positive coefficient which indicates that
these variables play an important role to increase banks profitability. The credit risk has a negative
coefficient that shows that increase in the ratio of credit risk decreases the bank's performance.