Case

TABLE OF CONTENTS

Contents Page No.

* Letter of Transmittal 1

* Acknowledgements 2

* Abstract 3

* Objectives of the Research 4

* Methodology 5

* Introduction 6

* Banking Spread in Pakistan 7

* Literature Review 8

* Data & Analysis – Correlation Test 10

* Regression Model & Hypothesis 14

* Analysis of Qualitative Factors 17

* Conclusion 18

* References 19

LETTER OF TRANSMITTAL

January 8, 2011

Mr. M. Ashraf Janjua

Senior Lecturer, Economics Department

Institute of Business Management

Korangi Creek, Khi-75100

Respected Mr. Janjua:

Please accept the Thesis entitled “Causes of high Banking Spreads in Pakistan”, completed by me and enclosed herewith. This thesis is a summary of the work I completed during the Fall Semester 2010. I completed the thesis on schedule and tried my level best to cover all the factors that affect banking spreads in Pakistan.

Thank you for your supervision and guidance. I am looking forward to work with you again.

Yours sincerely,

Farhan Zahid (9258)

ACKNOWLEDGEMENTS

First of all, I am grateful to ALMIGHTY ALLAH, the most gracious and the most merciful, without the willingness of WHOM, nothing is possible. HE gave me the courage to complete this report.

I would like to express my gratitude to all those who, directly or indirectly, made it possible for me to complete this research report. I am deeply indebted to my course instructor Mr. M. Ashraf Janjua, without whose support, it would not have been possible for me to complete the work on this report.

In the end I would particularly like to thank my institute for providing me with a state of the art library which helped me a lot in my research regarding the topic.

Abstract

This research paper focuses on determining the factors which result in high interest spreads charged by banks. It also assesses the relationship...