Original Research Article

The Impact of Banks Recapitalization on Employment Generation

Muhammad Rizwan Ullah^1*, Safdar Husain Tahir¹, Muhammad Azam² and Sajid Mahmood³

¹Department of Banking and Finance, Government College University Faisalabad, Pakistan
²Department of Business Administration, Virtual University Islamabad, Pakistan
³School of Management Sciences, Quaid-i-Azam University, Islamabad, Pakistan

*Corresponding Author’s E-mail: mrizwanullah77@gmail.com

Accepted October 17, 2016

Abstract

The aim of the study was to identify the extent of impact of recapitalized banks on employment. The secondary sources of data were used. The data analysis methods used for the study were multiple bar chart, multiple line graph, linear regression, and simple percentages. The results revealed that there was a decrease in employment in the banking industry before the consolidation took place. There was appreciable increase in employment from 2010 to 2016. Six Banks: Habib Bank, United Bank, Muslim Commercial Bank, Allied Bank, Bank Al-Habib and Meezan Bank account for 59% of total staff in the banking sector. Four banks: Habib Bank, United bank, Muslim Commercial Bank and Allied Bank account for 54.54% of total number of branches in the banking sector. It was recommended that banks should try to increase their number of branches for employment generation. Number of branches was a significant variable that explains the employment level in Pakistani banks.

Keywords: Banks, Employment, Human Resources, Number of Branches, Recapitalization