The objective of the study is to investigate the impact of risk taking behavior on the performance (measured as ROA and ROE) of listed banks of Pakistan during the time period of 2009 to 2018. The study employed the two step system GMM for estimation. The study has concluded that risk taking is negatively linked with performance implying that when banks lower their risk, they have large credit availability due to which banks have opportunity to raise their productive assets and profits. However, negative coefficient of the interactive term of risk taking and bank size implies that as size of the banks increase they are supposed to take more risk to increase their profits but when large banks take less risk their profits are adversely affected. Supervisor:- Dr. Farhat Mahmood Co supervisor:- Dr. Ahmad Fraz