Impact of Financial Liberalisation and Deregulation on Banking Sector in Pakistan

The study analyses market perception about the performance of Pakistani commercial banks due to financial liberalisation and deregulation measures taken by the central bank over the last two decades. For this purpose, it uses Survey approach. To augment the results of Survey Based Approach, it employs Distribution Free Approach to measure relative cost inefficiencies of commercial banks. Out of 35 commercial banks, 15 banks have been chosen for analysis purpose. Key banking reforms remain helpful in correcting flaws in the banking sector of Pakistan. In particular, privatisation of banks, the deregulation and institutional strengthening measures and switching towards market-based monetary and credit management remain helpful in correcting the prevailing flaws. The cost inefficiency scores of banks also indicate that the efficiency of Pakistani banks have improved during 1990 to 2006. As regards group-wise efficiency estimates, foreign banks are found to be more efficient, followed by private banks, nationalised commercial banks, and privatised banks. The relative high cost inefficiency of privatised banks is most probably due to having remained under state owned structure during most of the period of the study. The financial liberalisation and the resultant competitive environment might be the key factors behind improvements in efficacy of banks.Banking, Efficiency, Regulations, Financial Reforms

Impact of Financial Liberalisation and Deregulation on Banking Sector in Pakistan

The study analyses market perception about the performance of Pakistani commercial banks due to financial liberalisation and deregulation measures taken by the central bank over the last two decades. For this purpose, it uses Survey approach. To augment the results of Survey Based Approach, it employs Distribution Free Approach to measure relative cost inefficiencies of commercial banks. Out of 35 commercial banks, 15 banks have been chosen for analysis purpose. Key banking reforms remain helpful in correcting flaws in the banking sector of Pakistan. In particular, privatisation of banks, the deregulation and institutional strengthening measures and switching towards market-based monetary and credit management remain helpful in correcting the prevailing flaws. The cost inefficiency scores of banks also indicate that the efficiency of Pakistani banks have improved during 1990 to 2006. As regards group-wise efficiency estimates, foreign banks are found to be more efficient, followed by private banks, nationalised commercial banks, and privatised banks. The relative high cost inefficiency of privatised banks is most probably due to having remained under state owned structure during most of the period of the study. The financial liberalisation and the resultant competitive environment might be the key factors behind improvements in efficacy of banks.Banking, Efficiency, Regulations, Financial Reforms

Direct numerical method for solving a class of fourth-order partial differential equation

In this paper, we classified a class of fourth-order partial differential equations (PDEs) to be fourth-order PDE of type I, II, III and IV. The PDE of type IV is solved by using an efficient numerical method. The PDE is first transformed to a system of fourth-order ordinary differential equations (ODEs) using the method of lines, then the resulting system of fourth-order ODEs is solved using direct Runge-Kutta method (RKFD). The RKFD method is constructed purposely for solving special fourth-order ODEs. Numerical results demonstrated that the RKFD method is in good agreement with the exact solutions

Optimized fourth-order Runge-Kutta method for solving oscillatory problems

In this article, we develop a Runge-Kutta method with invalidation of phase lag, phase lag's derivatives and amplification error to solve second-order initial value problem (IVP) with oscillating solutions. The new method depends on the explicit Runge-Kutta method of algebraic order four. Numerical tests from its implementation to well-known oscillatory problems illustrate the robustness and competence of the new method as compared to the well-known Runge-Kutta methods in the scientific literature