Factors that Supports Revenue Generation in Banking Industry from 2019 to 2023

Abstract

This research paper investigates how banking sector generates its income on which factor revenue and profitability of banking sector depends. And it also investigates the income streams fund income, fee income, & revenue generates from interest income and its impact on bank’s performance. The results of study suggest bank’s profitability and its contribution to economic development of Pakistan. This study reveals that how Interest Income & Fee based income have a large variation in Assets to GDP & Deposits to GDP. Deposits are influenced by two independent variables. Interest income have positive impact on inflation. We have discussed several modes of income of banks in this study. We have observed fee based income does not depend on fluctuating interest rates. But as per this research Deposits have a positive relationship with Interest income & Fee based income. In this research Interest income & Fee based income shows variation in inflation. Higher inflation is source of high earning for banks.