Non-Performing Loans in Pakistan Banks Linked to Decreased Profitability and Share Prices
The study looked at how nonperforming loans affect the profitability of banks in Pakistan. They used data from 2006 to 2015 and found that nonperforming loans have a negative impact on bank profitability. Deposits have a positive but not significant effect, while liabilities have a negative impact. Larger banks tend to be more profitable. Additionally, nonperforming loans are linked to lower share prices.