Influential Factors Responsible for Profitability: A Technical Study on Commercial Banks in Bangladesh

  • S. M. Akber Lecturer, Department of Business Administration, Ranada Prasad Shaha University, Bangladesh
Keywords: Profitability, ROA, GDP, Banking Performance.

Abstract

This paper explores how many internal and external factors from 2007-2017 affect the competitiveness of commercial banks in Bangladesh. Many bank-specific variables are used to achieve the goals as internal factors, and macroeconomic variables are used as external factors. A sample of seven commercial banks will be used for this purpose. Return on equity is used as a proxy for profitability and capital adequacy, the size of asset quality banks, investment control, liquidity, resource structure, and economic indicators are used as proxies for the independent variable. The paper's overview findings show that asset structure, capital adequacy, and asset quality are the key factors in Bangladesh's profitability for the commercial bank. The paper's outcome indicates that if commercial banks are more worried about these factors, they could produce a better return on the competitive market.

References

Acaravci, S. K., & Çalim, A. E. (2013). Turkish banking sector’s profitability factors. International Journal of Economics and Financial Issues, 3(1), 27-41.

Bangladesh Bank. (2018). Retrieved from Bangladesh bank web site http://www.bb.org.com

Dey, M. (2014). Profitability of commercial banks in Bangladesh: a multivariate analysis. IOSR Journal of Business and Management (IOSR-JBM), 16(4), 92-95.

Gul, S., Irshad, F., & Zaman, K. (2011). Factors Affecting Bank Profitability in Pakistan. Romanian Economic Journal, 14(39).

Hossain, M. S., & Ahamed, F. (2015). Determinants of bank profitability: A study on the banking sector of Bangladesh. Journal of Finance and Banking, 13(1), 43-57.

Kleinbaum, D. G., Kupper, L. L., & Muller, K. E. (1998). Applied regression analysis and other multivariable methods. -PWS.

Krishnaswany, K.N., Savilkumar, A., & Mathirajan, M., (2011). Management Research Methodology, Integration of principle Method and Techniques. Delhi: Pearson education in South Asia.

Mirzaei, A., & Mirzaei, Z. (2011). Bank-specific and macroeconomic determinants of profitability in middle eastern banking. Iranian Economic Review, 15(29), 101-128.

Nisar, S., Susheng, W., Jaleel, A., & Ke, P. (2015). Determinants of bank’s profitability in Pakistan: A latest panel data evidence. International Journal of Economics, Commerce and Management, 3(4).

Noman, A. H. M. (2015). An empirical investigation of the profitability of Islamic banks in Bangladesh. Global Journal of Management And Business Research.

Published
2019-11-06
How to Cite
Akber, S. M. (2019). Influential Factors Responsible for Profitability: A Technical Study on Commercial Banks in Bangladesh. International Journal of Accounting & Finance Review, 4(2), 22-28. https://doi.org/10.46281/ijafr.v4i2.418
Section
Regular Research Article/ Short Communication Article