The Symbiosis of Macroeconomic Fundamentals and Financial Stability of Banks

Authors

  • Moazzam Ali Assistant Professor Department of Commerce, Allama Iqbal Open University, Islamabad, Pakistan
  • Nosheen Assistant Professor Department of Management Sciences, National University of Modern Languages, Islamabad, Pakistan
  • Nazia Malik Assistant Professor Department of Economics, National University of Pakistan, Rawalpindi, Pakistan

DOI:

https://doi.org/10.47205/jdss.2026(7-II)25

Keywords:

Financial Stability, ARDL, Long Run, Short Run, Macroeconomic Variables

Abstract

Stability of the banking sector plays vital part in maintaining a sound financial system and long term, sustainable economic growth. This paper examines how key macroeconomic factors influence financial stability of banking sector in Pakistan over the period 1980-2021. Applying autoregressive distributed lag (ARDL) model, this study captures the short run and long run dynamics of the relationship. The findings confirm evidence of cointegration indicating the existence of long-run relationship between banking sector stability and macroeconomic variables. The study suggests significant implication for the policy makers and the regulators of the banking sector by highlighting the role of macroeconomic variables in shaping the stability of the banking sector.

Vol. 7 No. 2 (2026): March to April

Downloads

Published

2026-04-21

Details

    Abstract Views: 8
    PDF Downloads: 0

How to Cite

Ali, M., Nosheen, & Malik, N. (2026). The Symbiosis of Macroeconomic Fundamentals and Financial Stability of Banks. Journal of Development and Social Sciences, 7(2), 291–301. https://doi.org/10.47205/jdss.2026(7-II)25

Issue

Vol. 7 No. 2 (2026): March to April

Section

Articles

License

Copyright (c) 2026 Journal of Development and Social Sciences

Creative Commons License

This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.

Open Access

ORIENTS SOCIAL RESEARCH CONSULTANCY (OSRC) & Journal of Development and Social Sciences (JDSS) adheres to Creative Commons Attribution-Non Commercial 4.0 International License. The authors submitting and publishing in JDSS agree to the copyright policy under creative common license 4.0 (Attribution-Non Commercial 4.0 International license). Under this license, the authors published in JDSS retain the copyright including publishing rights of their scholarly work and agree to let others remix, tweak, and build upon their work non-commercially. All other authors using the content of JDSS are required to cite author(s) and publisher in their work. Therefore, ORIENTS SOCIAL RESEARCH CONSULTANCY (OSRC) & Journal of Development and Social Sciences (JDSS) follow an Open Access Policy for copyright and licensing.

Creative Commons License 

Signatory of DORA