This study enhances the awareness of stakeholders about the
technological development in financial institutions and its role to
improve performance & growth of banking sector. This study also
creates understanding about Interest Rate Spread (IRS), which is a
prominent indicator of efficiency of the banking sector. IRS, in an
economy, has crucial implication for the growth and development, as
numerous authors suggest a critical link between efficient
intermediate and economic growth. Efficient intermediation benefits
the real economy by allowing higher expected return for saver and
providing more opportunity by cheep investible fund. This study
measures the impact of technological development along with other
traditional variables on IRS. The result reveals that
implementation/adoption of new technology has significant role in
IRS. This study also provides guidance to the stakeholders for the
improvement of banking sector in Pakistan.
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