FINANCIAL TECHNOLOGY'S IMPACT ON THE NON-PERFORMING LOANS HELD BY COMMERCIAL BANKS IN PAKISTAN

The aim of this research is to examine how financial technology affects a commercial bank's nonperforming loan ratio. Data for this research was gathered from 15 Pakistani commercial banks using the purpose sampling approach. An index is used to assess banks' financial technology. The two control variables are GDP growth and inflation. The outcome demonstrates that the percentage of non-performing loans at banks is significantly improved by financial technology activities. As financial technology advances, Pakistan's commercial banks' nonperforming loan ratio rises. Since financial technology is enhancing banking performance, the State Bank of Pakistan need to establish rules for the adoption of financial technology by all banks and give a certain amount of investment. This study helps new academics understand the significance of financial technology in the banking industry. This research adds to the body of knowledge on financial technology in relation to commercial banks.