FINANCIAL PERFORMANCE ANALYSIS OF PAKISTAN BANKING SECTOR USING THE ALTMAN Z SCORE MODEL OF CORPORATE BANKRUPTCY

Commercial Banks are the most important contributor in the economic development of a country having a huge impact on capital and credit markets of the country. The aim of this study is to explore if commercial banks have financial difficulties. Data was gathered from commercial bankswhich were listed on Karachi Stock Exchange for the period 2009 to 2013. The results illustrate that all commercial banks in this model are in monetary troubles but in fact, those commercial banks are operating successfully. So, the Z score model is unable to predict bankruptcy (pecuniary Performance) of financial institutions (Commercial Banks).

Keywords:

Stock Exchange Pakistan , Prediction , Bankruptcy , Altman model , Financial Performance