Banks In Bangladesh Research Articles

What Factors Influence the Increasing Dependency on Mobile Banking in Bangladesh? A Quantitative Study in Bangladesh

Mobile Banking has expanded in Bangladesh at a rapid pace for the last two decades in Bangladesh. Mobile service providers have introduced this magical financial innovation. It’s significant to understand what factors may motivate individuals to use online banking in Bangladesh. The study aims to identify influential factors of rapid growing M-banking in Bangladesh. A quantitative study based on a survey was adopted with 200 mobile banking users was selected as participants for the study. Participants think a wide variety of m-banking features with easy access and use plays a significant role in surging the system. The covid-19 pandemic has also increased people's dependency on m-banking. Apart from that, m-banking authorities have no direct contact with its customers. Safety, large amount of money transactions, deposit and profit limit features and reduced charges are all factors that would attract more customers in the coming days. Banks can presently provide managing an account administration to the country and unbanked populaces through portable phones. Around 54% of respondents opinioned that this framework is less exorbitant and timesaving and 63% of respondents felt believe in this benefit. 83% of respondents consider it is simpler to get to, but this benefit isn't accessible for interbred transactions, as well as the nonattendance of an administrative system may lead to cash washing exercises.

CSR reporting practices of Islamic and conventional banks based on ownership differences

Purpose This study aims to provide a thorough knowledge of the context and degree of corporate social responsibility (CSR) reporting in the annual reports of Islamic and mainstream banks in Bangladesh and to investigate whether ownership and the level of CSR reporting are connected. Design/methodology/approach This study uses the content analysis method to examine 150 annual reports from the 30 listed banking companies as its sample. The data are fitted to an ordinary least square regression model to determine the impact of independent factors on the overall CSR reporting score. Findings The study’s findings show that, on average, Islamic and conventional banks (ICBs) in Bangladesh disclose CSR data at rates of 46.27% and 43.44%, respectively, ranging from 14.15% to 76.32%. Furthermore, according to the study, ICBs’ public share ownership and CSR reporting showed a significant relationship. Conversely, institutional share ownership and foreign share ownership have been found to have no significant relationship with CSR reporting in conventional banks, but institutional share ownership has been found to have a significant relationship with the CSR reporting in Islamic banks. Social implications The research is expected to obtain the most accurate situation of Bangladeshi ICBs’ CSR reporting. To formulate regulations in this regard, governmental and other regulatory authorities can also obtain comprehensive information on CSR reporting procedures. Originality/value The paper contributes to the CSR works, as it presents empirical evidence of the effects of ownership distribution on the CSR reporting of ICBs in developing countries such as Bangladesh.

A Study on Export Receipts and Import Payments of Goods and Services the Analysis for Bank of Bangladesh

Bangladesh's Central Bank regulates international trade and monetary policy. To maintain a balanced trade, the bank promotes exporters and controls imports. The bank monitors the foreign exchange market and implements policies to help the country's economic growth and development. Bangladesh's export payments and receipts by key commodities, geographic region, and service delivery approach is studied. The banking sector has grown exponentially, resulting in new banks, modernised banks, and new services to meet people's requirements. Over 50 local and foreign banks compete for service delivery, interest rates and customer base. Export receipts of services and import payments of services the number of observations in the two variables, and our hypothesised mean difference to the degrees of freedom. Thus, the null hypothesis is accepted and the two-tail p-value increases. The significance of the difference between groups is unaffected by a negative t-value. Imports Major Commodities research F-value is good, but P-value is (0.00), which is highly significant. The null hypothesis is rejected. The study focusing on export receipt and import payments is essential as it deals with the financial aspect of international trade. Export receipts essentially refer to the payments received by a nation for the goods and services it exports to other countries while import payments refer to the goods and services brought in from other countries. This study is import payments as it provides insights into the economic conditions of nations concerning their global trade relations. It also helps nation assess their trade strengths and weaknesses to complete globally

A Comprehensive Study on the Influence of Corporate Governance Factors on Financial Performance of Listed Banking Companies in Bangladesh

This comprehensive study investigates the influence of organizational management elements on the economic outcomes of publicly traded banking enterprises in Bangladesh. The research begins with an introduction highlighting the significance of this study Within the framework of the Bangladeshi Financial industry. The review of literature delves into existing research on Effective management of organizations and their economic achievements, providing a foundation for this study. It identifies gaps and emphasizes the need for specific analysis in the Bangladeshi banking industry. An abbreviated summary of corporate oversight principles and practices sets the stage for understanding the study’s framework. Subsequently, the analysis of the financial industry in Bangladesh offers essential context for the study. The examination and results portion showcases factual information and outcomes, demonstrating the correlation between corporate governance elements and economic efficiency in banks listed in Bangladesh. Here we use five years data of five banks and then we use SPSS as a statistical tool for data analysis. The conclusion synthesizes these findings, highlighting key takeaways and their implications for the sector. Finally, the study concludes by discussing policy implications. It outlines recommendations for regulatory bodies and banking institutions to enhance the financial performance of banks in Bangladesh by implementing effective corporate governance strategies and practices. This study intends to provide valuable perspectives for stakeholders and decision-makers in the banking industry.

Antecedents of Customer Loyalty in Private Commercial Banks of Bangladesh

Bangladesh’s economy being a small one is home to a huge number of private commercial banks offering homogenous products giving rise to fierce competition within the industry. Gaining substantial customer loyalty can help bank companies survive the competition in the industry. This study tried to review the impact of service quality and perceived value as the antecedents of customer loyalty for private commercial banking customers in Bangladesh. The study reveals that service quality and perceived value positively influence customer loyalty and that the positive impacts are significant as found in prior studies. Additionally, this study suggested that private commercial banks in Bangladesh ought to continually gratify customers by ensuring the quality of service and enhancing perceived value, thereby gaining customer loyalty. As the implication, this study highlighted to the scholars and professionals in the banking industry may resort to the findings of the study for having a better understanding of how the different relevant factors give rise to customer satisfaction, which in turn creates customer loyalty, and how they influence each other as well. The outcomes of the study will assist the practitioners in which innovative and distinctive marketing strategies are to be devised to enhance customer loyalty.

AN ANALYSIS ON THE ROLE OF STOCK BROKERAGE HOUSES IN COMMUNITY DEVELOPMENT

This study investigates the role of stock brokerage houses in community development within the context of Bangladesh's capital market. Data and information are sourced from a variety of secondary sources, encompassing financial platforms like the Dhaka Stock Exchange (DSE) and Chittagong Stock Exchange (CSE), credible news websites such as Investing.com, published literature, and official reports from regulatory authorities such as the Bangladesh Bank and the Bangladesh Securities and Exchange Commission (BSEC). Quantitative data spanning the period from 2010 to 2019 are meticulously extracted from stock exchange databases as well as the IMF World Economic Outlook database. These datasets are meticulously structured and analyzed using tables, charts, and graphs. Amidst challenges such as market collapses and the COVID-19 pandemic, the resilience and growth of Bangladesh's capital market are evaluated. The results reveal that brokerage houses have a significant impact on community development in Bangladesh. For instance, the total traded volume reached Tk. 2,169,597 million in 2017, marking an 82.08% increase from the previous year. Sector-wise turnover data showed consistent investment trends, particularly in manufacturing, financials, and pharmaceuticals. These investments have led to job creation and infrastructure development, highlighting the role of brokerage houses in fostering employment and socioeconomic advancement. Additionally, the adoption of online trading platforms has driven technological advancement and financial inclusion. The findings of this study suggest that brokerage houses are crucial intermediaries in the capital market, contributing to economic growth, financial inclusion, and community development through their investment activities and corporate social responsibility initiatives.

Factors Affecting Employee Satisfaction in Private Commercial Banks: Evidence from Bangladesh

The purpose of this study is to determine the factors that influence employee satisfaction in private commercial banks in Bangladesh. Data used in the study were collected through an online survey. A total of 380 entry to mid-level employees from the private banking sector participated in the survey during 2024. Research method is a multiple regression analysis. The study takes employee satisfaction as the dependent variable and estimates relationship between the dependent variable and seven exogenous variables. The findings of the study show that organizational culture, leadership behavior, job characteristics, work environment, compensation and benefits, and employee training have significant positive impacts on employee satisfaction. Banks may design strategies to assure competitive compensation, build a positive work environment, support effective leadership, and encourage employee engagement and growth by understanding the elements that affect employee satisfaction.

The Evaluating Impact of Artificial Intelligence on Risk Management and Fraud Detection in the Commercial Bank in Bangladesh

The integration of Artificial Intelligence (AI) in the banking sector represents a significant leap forward in the realms of risk management and fraud detection. This paper explores the transformative effects of AI in these areas, emphasizing both the improvements and the challenges brought about by its implementation. In risk management, AI's influence is diverse and profound. Advanced algorithms allow for the creation of more sophisticated credit risk assessment models by detecting subtle patterns in large datasets that might be overlooked by human analysts. This capability enhances the accuracy of credit risk evaluations. Additionally, real-time monitoring of transactions helps in the immediate mitigation of risks, which is particularly crucial when dealing with market and liquidity risks. AI also significantly aids in automating compliance with regulatory requirements, reducing the likelihood of human errors and enabling quicker adaptation to changes in regulations. Operational risks are also minimized through AI's ability to automate routine tasks and strengthen cybersecurity measures. AI systems are adept at identifying anomalies that may indicate fraud by scrutinizing transaction data and customer behavior. The predictive capabilities of AI enable banks to anticipate and prevent potential fraud schemes. Moreover, AI systems can adapt and evolve in response to changing tactics used by fraudsters, maintaining their effectiveness over time. AI enhances customer authentication processes through the use of advanced technologies such as biometric verification, providing an additional layer of security. However, the implementation of AI in banking raises significant concerns regarding data privacy and security due to the sensitive nature of banking information. Furthermore, AI models can inherently carry biases that lead to discriminatory outcomes, necessitating ongoing monitoring and adjustments to these models. The complexity and lack of transparency in AI systems also pose challenges, particularly when AI-driven decisions have significant impacts on customers. The evolving regulatory frameworks for AI in banking present another layer of complexity, as banks must continuously adapt to comply with new and changing regulations. This paper highlights the need for a balanced approach to leveraging AI's potential in banking, addressing both its transformative benefits and the ethical and regulatory challenges involved. By doing so, banks can harness AI to enhance their operations while ensuring fairness, transparency, and compliance with regulatory standards.

A Review of the MFS Regulatory Framework to Control IFF in Bangladesh

Mobile financial services (MFS), with their focus on technology and ease of use, have emerged as a novel approach for developing countries to address the problem of adopting best practices to promote financial inclusivity. However, if there are no effective regulations or guidelines in place on a national and international level, the purpose of achieving full financial inclusion and the Sustainable Development Goals might go in vain. For instance, to prevent illicit financial flow (IFF) and ensure that this financial system operates properly, the central bank of Bangladesh, one of the world’s fastest-developing nations, implemented the most recent MFS rule. However, a number of MFS-related fraud incidents have prompted scholars to critically assess the Bangladesh Bank’s (BB) MFS regulatory system with a focus on the efficiency of IFF prevention. This study has demonstrated that the current regulatory system has a weak KYC verification system using a comparative methodology. Following that, if someone has access to someone’s personal information, they also have access to their MFS accounts. In general, the current MFS adheres to a risk-based regulatory paradigm that forces regulators to wait until a hazard occurs and limits them to this legal framework. Policy makers would then be advised by this study to implement a smart regulatory approach in order to establish a climate that is anti-IFF.

Corporate board characteristics and CSR budget of selected Bangladeshi banks: moderating role of corporate reputation

Corporate board characteristics and CSR budget of selected Bangladeshi banks: moderating role of corporate reputation

THE EFFECT OF BANK-SPECIFIC AND BANK RISK ON BANK STABILITY AS MEASURED BY NPL OF THE BANGLADESHI COMMERCIAL BANK

This paper analyzed the effects of bank-specific and bank-risk drivers on bank stability as measured by non-performing loans(NPL) of commercial banks in Bangladesh from 2011 to 2021.This study used panel linear regression, and panel corrected standard error (PCSEs) to estimate the model. The main objective of the study was to analysed the effects of bank specific and bank risk on bank stability of conventional banks in Bangladesh. Capital adequacy, asset quality, income diversification, bank competition, managerial efficiency, and profitability (ROE) are used as proxies for bank-specific and liquidity risk; Sensitivity to marketing risk is used as proxies for bank risk, while control variable is used as bank size and non-performing loan (NPL) are used as a proxy for measurement of bank stability. The main results show that capital adequacy and profitability (ROE) are negative, but asset quality, income diversification, bank competition, and managerial efficiency are positively related to the NPL. The results further evaluate those determinants of bank risk, liquidity risk, and marketing risk have a positive impact on the NPL. The control variable bank size has a negative impact on the NPL. Based on our results, authorities in Bangladesh may develop rules for managing operations and ensuring bank stability as measured by NPLs.

The profitability of green banking activities of selected banks (SCBs and PCBs) in Bangladesh: An empirical analysis

The profitability of green banking activities of selected banks (SCBs and PCBs) in Bangladesh: An empirical analysis

Effects of Ownership Structure on Intellectual Capital: Evidence from Publicly Listed Banks in Bangladesh

This study explored the impacts of ownership structure (OS) on intellectual capital (IC) and its components. Data were gathered from 31 Dhaka Stock Exchange-listed banks for five years, from 2017 to 2021, consisting of 155 observations as balanced panel data. The study used the modified value-added intellectual coefficient (MVAIC) model to track the IC efficiency. The robust fixed effects model was employed for regression analysis to test the hypotheses. The research found that sponsor director ownership is negatively associated with the MVAIC, human capital efficiency (HCE), and structural capital efficiency (SCE) but positively with relational capital efficiency (RCE). High institutional and public ownership are positively linked with SCE but negatively with RCE. Foreign ownership is only positively associated with banks’ MVAIC and HCE. The regression results showed that high institutional ownership (IO) significantly enhanced the MVAIC and HCE. Foreign and public ownership positively influenced banks’ MVAIC, HCE, and capital employed efficiency (CEE) but negatively impacted RCE. The findings of this study will help banks’ policymakers with ownership mixes for the optimum utilization of banks’ resources. Management may assess IC’s efficiency level for proper supervision and use of knowledge resources to boost bank profitability. Also, the findings will help investors make prudent investment decisions. This is the first study to focus on OS and IC with diverse elements in Southeast Asia, especially Bangladesh, an emerging market.

Sustainable Housing Finance: Role of Islamic Banks in Bangladesh

Sustainable Housing Finance: Role of Islamic Banks in Bangladesh

Impact of Macroeconomic Factors on Performance of Banks in Bangladesh

The present study investigates the impact of macroeconomic factors on the performance of banks in Bangladesh. The study analyzed 25 commercial banks consisting of both Islamic and conventional banks in Bangladesh from 2012 to 2021. The data was analyzed using the ordinary least square (OLS) regression model. Return on assets (ROA) is the dependent variable while macroeconomic variables such as GDP growth (GDPG), inflation (INF), and unemployment (UNEP) are the independent variables. The regression results showed that unemployment rate have a significant impact on the return on assets for banks in Bangladesh banks. There was no significant impact between GDP growth and inflation on the return on assets. Policymakers should consider the impact of unemployment rates on bank performance when making economic policy decisions, with a focus on reducing unemployment rates to improve bank performance. This has been particularly relevant during the COVID-19 pandemic, where policies to prevent widespread unemployment could have positive effects on bank performance

Exploring the dynamics of Bangladesh bank's monetary policy: A factor analysis approach

This study examined the factors influencing the monetary policy of Bangladesh Bank using a structured questionnaire to interview 207 sample respondents from Bangladesh Bank and 19 listed private conventional commercial banks. The study analyzed and interpreted respondents' opinions using descriptive statistics and varimax rotated factor analysis. The study identified the effect level of various factors influencing the monetary policy of the Bangladesh Bank and ranked the factor variables from 1 to 24 based on the adjusted mean score. The researchers found that the most influential factors in the monetary policy of Bangladesh Bank are price risk, market operations, political-economic variables, and governance. In contrast, the most negligible significant factors are price stability and market liquidity based on the varimax rotated factor analysis. Therefore, the study found that the researcher's set of monetary policy factors has significant implications for the Bangladesh Bank's monetary policy.

JOB TRAINING’S IMPACT ON INNOVATIVE BEHAVIOUR IN BANGLADESH’S PRIVATE BANKING WORKERS

The banking industry has changed dramatically in recent years in developing nations like Bangladesh, and innovation is crucial to adapting to these developments. On the other hand, training for employees holds immense significance for both the individuals and the organizations they work for. Training allows employees to develop and enhance their skills and innovative ideas. This study looks at the relation between job training and innovative work behavior (IWB) among the employees in private bank sector in Bangladesh. This study used a quantitative methodology to investigate the correlation between variables with individual bank employees serving as the unit of analysis. Using a systematic purposive sample approach, one hundred and twenty workers from twenty branches of five private banks in Bangladesh were sent questionnaires via email. Appropriate statistical tools were used to analyse the collected data. Results show that the length of training has crucial impact on the level of innovative work behavior among the bank employees. Theoretical and practical implications, limits, and recommendations for further study are highlighted and explored in light of the results.

A longitudinal examination of anti-corruption disclosure in the banking sector of a least-developed economy: does board composition make a difference?

PurposeThis study focuses on anti-corruption disclosure (ACD) as a critical indicator of a bank’s commitment to combat corruption. It seeks to measure the level of ACD in banking companies. Emphasizing the pivotal role of board directors in ensuring corporate accountability and transparency, the study further explores the connection between board composition and ACD.Design/methodology/approachThis study adopts automated content analysis (using keyword search) to measure the level of ACD in the annual reports of listed banks in Bangladesh. Drawing upon agency theory and resource-dependence theory, the study proposes that the collective monitoring and resources facilitated by a well-structured board (size, gender diversity and independence) significantly influence a bank’s commitment to combat corruption. The paper employs linear regression to examine the hypotheses. The reliability of the findings is further validated through the application of the Generalized Method of Moments (GMM) and Quantile Regression.FindingsThe results indicate a steady rise in ACD over the sample period (2014–2022). The analysis establishes that larger board sizes and a greater presence of female directors are positively associated with ACD. Notably, the study identifies a critical mass of at least three female directors for a significant positive relationship between gender diversity on the board and ACD. However, no significant relationship is observed between board independence and ACD.Practical implicationsThe study sheds light on the current state of ACD within the banking companies of a least-developed country. The findings carry significant implications for regulators to gauge banks' dedication to anti-corruption efforts and make informed decisions on issuing guidance for enhanced ACD. These findings can also assist regulators in assessing the implications of board composition and formulating guidelines within the corporate governance code.Originality/valueThis study contributes to the literature on ACD in the context of a least-developed economy. Notably, the study fills a research gap by exploring ACD in the banking industry. A key aspect of this study is its exploration of the determinants of ACD, explicitly emphasizing how board composition is likely to influence ACD.

Discovering the relationship between Agri funding and Agri contribution to GDP

One of the main goals for Bangladesh is to achieve economic growth by increasing agricultural productivity. I will be conducting research to examine how agricultural financing and contributions impact Bangladesh. The researchers collected yearly time series data from the Bangladesh Bank (BB), Ministry of Finance (MoF), and Bangladesh Bureau of Statistics (BBS) for the period of 2012 to 2022. This article employed the GMM estimation technique using SPSS to examine the short- and long-term relationships between agricultural financing and agricultural contribution, along with other control variables. The findings of the study showed that there are connections between agricultural funding and agricultural contribution in both the short-term and long-term. Additionally, agricultural productivity is affected by various dynamic factors including GDP, inflation, interest rates, and government agricultural spending. The dependent variable in this study was GDP, while the independent variable was agricultural production. Most agricultural processing sectors, along with some agricultural producing sectors, have a greater potential for making money. This research indicates that it would be beneficial to increase agricultural financing in order to support the economic development of Bangladesh.

The Impact of the Stimulus Packages on the Economy during COVID-19 in Bangladesh: A Mixed-Method Approach

With the unexpected onset of COVID-19, governments across the world responded with a range of preventive measures, including the imposition of lockdowns. To mitigate the adverse effects of lockdowns arising from supply chain shocks and employment loss, governments worldwide chose to implement policies to stimulate their economies and keep them working. This study assesses the impact and effectiveness of four of these packages in Bangladesh, employing a mixed-method approach. These packages include “salary support for workers in export-oriented RMG industries”, “working capital loans for affected industries and service sectors”, “working capital loans for cottage, micro, small, and medium enterprises”, and initiatives for “revitalizing the rural economy and job creation”. Each package was examined individually because of their differences in beneficiary groups, implementation methods, and individual objectives. Quantitative analysis involved propensity score matching (PSM), the difference in difference model (DID), and structural equation modelling (SEM). Stakeholders, including policy implementers, Bangladesh Bank officials, policy analysts, academics, workers, and beneficiaries, contributed to the qualitative analysis through extensive key-informant interviews, providing a comprehensive assessment of intervention outcomes. Ultimately, the results show that the packages achieved their socio-economic relief objectives for beneficiaries. The research examined both positive impacts and challenges in their implementation. It suggests that all four packages successfully achieved their goals, such as providing social and economic support, sustaining livelihoods, addressing marginalized groups’ needs, ensuring survival for large industries and small businesses, and promoting employment. In order to better address future shocks, establishing a beneficiary database integrated with the national system is recommended for smoother policy rollout. Despite acknowledged limitations, including challenges in beneficiary identification, data availability, and time constraints, the study’s unbiased estimations provide valuable insights to guide future policy directions in similar situations.