1.1.

Significance of the Study

This research attempts to find the effect of competition on the performance of banks in
Pakistan. Banking is a business that adds up to the economy and progress of any country. The
results from this research contributes in finding out that how much a competition is beneficial
or unfavorable for a bank and also investigates its overall impact on the performance of banks.
The aim of this study is to identify the relation between the competition and bank performance.
This research enables us to know whether the competition in the banking sector is worthy or
immoral. Furthermore it helps in understanding the factors related to growing banking sector
and add up to the formation of new banking policies to decrease the risk or increase the profits
related to it.