Determinants of bank profitability for the selected private commercial banks in Bangladesh: a panel data analysis
Article
Article Title | Determinants of bank profitability for the selected private commercial banks in Bangladesh: a panel data analysis |
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ERA Journal ID | 31194 |
Article Category | Article |
Authors | Islam, Md. Ariful and Rana, Rezwanul Hasan |
Journal Title | Banks and Bank Systems |
Journal Citation | 12 (3), pp. 179-192 |
Number of Pages | 15 |
Year | 2017 |
Place of Publication | Ukraine |
ISSN | 1816-7403 |
1991-7074 | |
Digital Object Identifier (DOI) | https://doi.org/10.21511/bbs.12(3-1).2017.03 |
Web Address (URL) | https://www.proquest.com/docview/2221324748 |
Abstract | This study aims to investigate the determinants of profitability of fifteen selected private commercial banks in Bangladesh over the period 2005-2015. The study emphasizes on the internal factors that affect bank profitability. This research uses panel data to explore the impact of the nonperforming loan, cost to income ratio, loan to deposit ratio, commission fees, cost of fund and operating expenses on the profitability indicators of banks like return on asset and return on equity. The experimental outcomes have found strong evidence that nonperforming loan (NPL) and operating expenses have a significant effect on the profitability. Moreover, the results have shown that higher NPL may lead to less profit due to the provision of classified loans. Again, higher loan to deposit (LD) ratio and cost of fund contribute towards profitability, but their impacts are not significant in the private commercial banks of Bangladesh. |
Keywords | bank profitability; Bangledesh |
Byline Affiliations | University of Dhaka, Bangladesh |
University of Southern Queensland | |
Library Services |
https://research.usq.edu.au/item/wv1w6/determinants-of-bank-profitability-for-the-selected-private-commercial-banks-in-bangladesh-a-panel-data-analysis
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