Internet Banking as Determinant of Pakistan Banking Sector Profitability: ROA & ROE Model

摘要

Information and Communication Technology (ICT) has challenged a new infrastructure for the world economy to be truly competitive in this world of globalization, efficiency and accuracy. Internet or online banking system is one of those challenges given by ICT which has become fundamental technology compelled revolution in piloting financial transactions. However, banks have invested huge resources in this direction along with the validation to accept it by users as a useful way. Although, the purpose of this study is to investigate the waves of internet banking transactions on profitability as ROE and ROA of Pakistan banking sector by smearing regression analysis on quarterly collected financial data obtained from statistics department of State Bank of Pakistan for the period of 2004 to 2013. The results demonstrate a positive and significant impact of internet banking on ROE and ROA of Pakistan banking sector overall for the long run. Keywords: Internet Banking, ROE, ROA, Pakistan