Impact of Banks' Growth on Financial Performance with Offering Supply Chain Finance: A Comparative Study of Pakistani Banks Incorporating Data Analysis

Abstract

Supply Chain finance is important financing growth tool used by banks. However, existing literature pay less attention to the use of supply chain finance especially the in-depth investigation on the impact of banks growth with offering supply chain finance on financial performance. The objective of this study to empirically examines a comparative study between banks growth with offering supply chain finance impact on firm performance with banks not offering supply chain finance growth impact on financial performance. This study used dynamic generalized method of moments (GMM) technique, based on 22 Pakistani Banks (10 offer supply chain finance and 12 non-offering supply chain finance) data during 2012-2022. The results show a significant difference between banks growth by offering and non-offering supply chain finance impact on. Furthermore, the results show a significant positive impact of banks growth with supply chain finance on banks financial performance. This study encourages banks to offer supply chain finance that contributes towards their growth and financial performance.