Performance Of Banks In Bangladesh Research Articles

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.

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

Affiliation between Capital Adequacy and Performance of Banks in Bangladesh

Purpose: The aim of the research is to explore the affiliation between banks performance and capital adequacy in Bangladesh. Methodology: A total of 20 listed conventional banks are selected as a sample covering a period of 11 years from 2010-2020. The analysis of the study is conducted with help of correlation and multivariate fixed effect regression analysis to examine how the capital adequacy ratio (CAR), the credit deposit ratio (CDR), and the cost-income ratio (CIR) influence the performance of banks. Findings: With the use of correlation and regression analysis, the researchers have come to the conclusion that the capital adequacy ratio (CAR) has a negative association with return on assets (ROA) and the cost-income ratio (CIR) has a negative relationship with return on assets (ROA), while the credit deposit ratio (CDR) has no relationship with return on assets (ROA). On the other hand, the capital adequacy ratio (CAR) and cost-income ratio (CIR) have a negative association with return on equity (ROE), but the credit deposit ratio (CDR) has a positive relationship with return on equity (ROE). The study concluded that capital adequacy and return on assets (ROA), as well as capital adequacy and return on equity (ROE), have a significant association. Thus, capital adequacy and banks' performance are significantly related. Practical Implications: The performance and credit deposit ratio is positively related. An increase in credit deposit ratio will increase the profitability. The cost income ratio is negatively related with profitability. Banks should maintain cost income ratio low as possible. The capital adequacy ratio is negatively related with profitability. An increase in capital adequacy ratio will reduce the profitability. Originality: This is an original research of researchers. The researchers attempt to examine the data using a large sample and sophisticated statistical tools to conduct the research. Research Limitations: The research is based on only the secondary data.

Impact of Technology on the Performance of Commercial Banks in Bangladesh

Among the financial service industry, the banking sector was one of the first to embrace rapid globalization and benefit significantly from IT development. Recently the private banks of Bangladesh are trying to imitate the banking structure of developed countries. There are 30 commercial banks listed in Dhaka Stock Exchange. The research is based on the data that was available in the annual report and websites of those banks. The study of the impact of technology on the performance of commercial banks in Bangladesh will provide us about the positive and negative impact of technology to the earnings of banking sector. Recently automation has become a trend for commercial banks of Bangladesh, at least it have to be automated at head-office level. The study includes ATM number, online branch number, mobile banking and online banking percentage. From the analysis, we can see that Basic Earning Power of commercial banks is declining from 2010. ATM number is growing rapidly than automating branch services. Mobile banking is a recent topic in our country, and it has positive impact on return. In the earlier period, adoption of technology was not essential to sustain in the market. But now-a-days, analysis shows that technologically advanced banks get higher return compare to others. The empirical model for the panel data analysis is fixed effect and random effect model. To determine which model is giving best result for the study, Hausman test has been done. In the panel data analysis, random effect model has given a good result than fixed effect model. Where we can see that, customers are more concerned about ATM number and online banking.

Factors affecting environmental performance: evidence from banking sector in Bangladesh

Analysis of environmental impacts of production of goods or services helps assess environmental performance of any activity. This paper aims at determining the factors that influence environmental performance of banks in Bangladesh. Bank's Environmental Performance Score (EnPS) is calculated based on the Global Reporting Initiative (GRI) Sustainability Guidelines, 2002. All the necessary data are collected from the content analysis of the audited annual reports of 31 scheduled commercial banks for the financial year ending December 2012. Applying multiple regression technique this study finds that bank's credit rating score is positively related to EnPS, whereas premium in share price and bank's longevity in service are negatively associated with EnPS. Contrary to the common perception that a large and highly profitable bank would be environmentally more concerned, the result shows no such association between these variables. Policy-makers, therefore, may urge large and highly profitable banks to lead environmental initiatives towards green banking revolution in Bangladesh.

Factors affecting environmental performance: evidence from banking sector in Bangladesh

Analysis of environmental impacts of production of goods or services helps assess environmental performance of any activity. This paper aims at determining the factors that influence environmental performance of banks in Bangladesh. Bank's Environmental Performance Score (EnPS) is calculated based on the Global Reporting Initiative (GRI) Sustainability Guidelines, 2002. All the necessary data are collected from the content analysis of the audited annual reports of 31 scheduled commercial banks for the financial year ending December 2012. Applying multiple regression technique this study finds that bank's credit rating score is positively related to EnPS, whereas premium in share price and bank's longevity in service are negatively associated with EnPS. Contrary to the common perception that a large and highly profitable bank would be environmentally more concerned, the result shows no such association between these variables. Policy-makers, therefore, may urge large and highly profitable banks to lead environmental initiatives towards green banking revolution in Bangladesh.

Impacts of Capital Structure on Performance of Banks in a Developing Economy: Evidence from Bangladesh

The capital structure decision plays an important role in the performance of a firm. Therefore, there have been many studies inspecting the rapport of capital structure with the performance of firms, although the findings of these studies are inconclusive. In addition, there is a relative deficiency of empirical studies examining the link between capital structure and the performance of banks in Bangladesh. This study attempts to fill this gap. Using the panel data of 22 banks for the period of 2005–2014, this study empirically examined the impacts of capital structure on the performance of Bangladeshi banks assessed by return on equity, return on assets and earnings per share. The results of the pooled ordinary least square analysis showed that capital structure inversely affects bank performance. The findings of this empirical study are of greater significance for the developing countries like Bangladesh because it calls for the concentration of the bank management and the policy makers to pursue the policies that reduce reliance on debt to achieve the optimal level of capital structure. The results of this study are also analysed in the light of earlier studies.

Investigating the Performance of Islamic Banks in Bangladesh

Around the world Islamic banking system is getting popularity gradually due to its multidimensional benefits. Consequently, many tradition banks have been converted (such as FSIBL and EIBBL) into Islamic Sharia’h based banks for the superiority of Islamic banking system. Thus, it is the curiosity of the investors, depositors, researchers and policy makers to know the performance of Islamic banks operating in Bangladesh. So, taking secondary data from the annual reports of the sample banks, the study has evaluated the performance of six Islamic banks listed at both Dhaka Stock Exchange (DSE) & Chittagong Stock Exchange (CSE) in terms of deposit; investment; foreign remittance collection; earnings per share (EPS); dividend declaration; dividend payout ratio; price earnings ratio (P/E) and net asset value (NAV). The study found that six Islamic banks have performed very well. Especially; Islami Bank Bangladesh Ltd. has shown outstanding performance in terms of every indicator. It is expected that the study will not only help the investors and depositors to make their decisions in more efficient way but also; it will motivate non-Islamic banks to convert their business mode according to Islamic Sharia’h.

Development and future prospects of Islamic banking in Bangladesh

The objective of this research is to provide a brief analysis of the performance of Islamic banks in Bangladesh. The Islamic banks in Bangladesh continued to show strong growth since its inception in 1983 to June 2007, Islamic banks maintained and achieved strong position in the key areas like capital adequacy, liquidity, assets quality, management and earnings. The research is based on primary data, which has been collected by giving out a questionnaire to the employees of four selected banks at random basis. A sample of 200 respondents took part in this study.