1. ULFAT ABBAS - Lecturer, Department of Business Administration and Commerce, Institute of Southern Punjab Multan
(Pak).
2. HABIB ULLAH - PhD Scholar, Institute of Business Management & Administrative Sciences, The Islamia University of
Bahawalpur (PAK)
3. *RAO IMRAN ALI - Research Scholar, University of Portsmouth – UK
4. SHAHID HUSSAIN - PhD Scholar, Department of Management Science, Khawaja Fareed University of Engineering and
Information Technology Rahim Yar Khan (PAK).
5. MUHAMMAD WAQAS ASHRAF - PhD Scholar, Institute of Business Management & Administrative Sciences, The Islamia University of
Bahawalpur (PAK).
The major objective is to uncover strong co-movement among GDP growth and financing, as well as between GDP growth and bank profitability, demonstrating that pro-cyclicality in bank credit and capital increases risk-taking while directly impacting national bank on economic security. The data for our study will be gathered from yearly reports of Pakistan's banking sector, which can be acquired from the website of the State Bank of Pakistan, and will be analyzed from 2010 to 2016. The study used STATA software to discover the impact on financial stability through GDP growth in Pakistan. The findings suggest that there is significant role of GDP growth in the stability of financial sector. All three proxies are significant with stability (ZScore) which means there increase in GDP, it will leads to improve the stability of banks.
GDP Growth, GDP Per Capita, Stability, Banking Sector, Financial Crises, Islamic Banks, Conventional Banks, STATA