DETERMINANTS OF E-BANKING ADOPTION IN PAKISTAN: AN EMPIRICAL ANALYSIS

The efficiency of a country's banking system is a vital indicator of its economic development and overall health. A sound and robust banking system is essential for the proper functioning of a modern economy. Banks play a central role in facilitating economic activities and fostering growth. They serve as intermediaries between savers and borrowers, helping to allocate resources efficiently. Moreover, banks provide essential financial services, including payment processing, credit provision, and risk management that are crucial for businesses and individuals. In this context, the banking sector is often considered the backbone of an economy, influencing its overall stability and prosperity. Efficient banking systems help channel funds to productive investments, thereby stimulating economic growth. They also contribute to financial stability, as well-managed banks are better equipped to withstand economic shocks and prevent financial crises. Furthermore, a competitive and innovative banking sector can enhance financial inclusion, allowing more people to access and benefit from banking services. This paper explores the critical role of banking systems in economic development, emphasizing their contributions to resource allocation, financial stability, and financial inclusion. By understanding the intricacies of banking systems, policymakers and stakeholders can work towards fostering a healthy and efficient financial sector, ultimately driving economic progress