The Lahore Journal
of Business

The Lahore Journal
of Business

Lahore Journal of Business

(HEC recognized journal in “Y” category)

The Lahore Journal of Business is aimed at providing a specialized forum for dissemination of qualitative and quantitative research in various areas of business administration. The LJB invites researchers, policy makers and analysts to submit original theoretical and empirical papers that explore and contribute to the understanding of various areas in the business domain. The Journal aims at bringing together state-of-art research findings, particularly from emerging markets, in various business disciplines including (but not limited to) accounting, banking, management, marketing, finance, investments, human resource management and organizational behavior.

Adnan Bashir and Arshad Hassan
The Lahore Journal of Business, Volume 7, Issue 1, Apr-Sep 2018, pages 113-136, https://doi.org/10.35536/ljb.2018.v7.i1.a5

This paper examines and compares the relationships between capital regulations, risk and efficiency of Islamic banks with conventional banks in Pakistan from 2003 to 2015. By employing seemingly unrelated regression (SUR) this study finds that capital regulations have no significant effect on the risks taken by Pakistani Islamic banks. Capital regulations have increased the operational efficiency, while it has neither decreased nor increased the cost efficiency of the banks. The results of this study find no major difference in the capital regulations, risk and efficiency relationships between Islamic and conventional banks. The findings of this study also highlight the significant difference in the effect of capital regulations on the bank risks before and after the Global Financial Crisis of 2008, while there is no difference in the impact of capital regulations on bank efficiency before and after the 2008 crisis.