Impact of Changes in Reserve Requirement on Banks Profitability: A Case of Commercial Banks in Pakistan
This study examines the relationship between Reserve Requirement Ratio and Banks Profitability in Pakistan. It emphasizes on the effect of changes in CRR on commercial banking profitability and how it affects the ROE and ROA. The data collected for the research was secondary and quantitative time series data for the ten year period 2005-2014. Using correlation analysis followed by Linear Regression carries the empirical analysis of the study. The finding of study reveal that CRR taken as measure for Reserve Requirement has significant inverse relationship on banks’ financial performance, which is measured by ROA and ROE. Keywords: Reserve Requirement Ratio (RRR), Cash Reserve Ratio (CRR), Return on Assets (ROA), Return on Equity (ROE).
This paper analyzes a two-player game of strategic experimentation with three-armed exponential bandits in continuous time. Players face replica bandits, with one arm that is safe in that it generates a known payofi, whereas the likelihood of the risky arms’ yielding a positive payofi is initially unknown. It is common knowledge that the types of the two risky arms are perfectly negatively correlated. I show that the e‐cient policy is incentive-compatible if, and only if, the stakes are high enough. Moreover, learning will be complete in any Markov perfect equilibrium if, and only if, the stakes exceed a certain threshold.