Domestic vs foreign : a comparison of financial performance of domestic and foreign banks in Pakistan

Abstract

This study examines the relationship between ownership and financial performance of domestic and foreign banks of Pakistan during 2001-2010. The ownership is divided into domestic banks and foreign banks. To measure the financial performance, we used return of assets, return on equity and dividend payout ratios. The study has used the secondary data,obtained from Stock market and annual financial reports of Pakistan. By applying the panel data, we have found significant relationships of domestic banks with the financial performance of the banks. Our results show domestic banks performed better as compared to foreign banks in Pakistan. Key Words: Performance, Ownership, Domestic Banks, Foreign Banks, Pakistan.