The important aspect of the banking industry in Bangladesh is successfully helping to face the financial crisis at present and in the future. This paper explores some factors that influence the profitability of commercial banks. The main objective was to important factors analyze performance decisions as the profitability of commercial banks in Bangladesh. The necessary data was collected from secondary sources. Profitability is measured by return on assets (ROA). A sample of 16 commercial banks out of 32 listed on both DSE and CSE for the period 2016-2020. Profitability measures were calculated and using statistical tools SPSS 25 version through Pearson’s correlation, descriptive analysis of variance and regression analysis were utilized in testing the hypotheses and to measure sample banks accounting to their different characteristics. However, the results indicate that there is a significant positive between ROA of banks TCA, TIA and TOEI variables, as well as a negative correlation with the NLBS variable. The regression model reveals that banks specific factors such as TCA, TIA, TOEA and NLBS are influencing factors for the changes in ROA. Further, it is required to strengthen the recommendation that empirical studies should be undertaken in the same field to find out what more specific factors could affect the profitability of commercial banks in Bangladesh.
| Published in | International Journal of Economics, Finance and Management Sciences (Volume 10, Issue 4) |
| DOI | 10.11648/j.ijefm.20221004.16 |
| Page(s) | 210-216 |
| Creative Commons |
This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited. |
| Copyright |
Copyright © The Author(s), 2024. Published by Science Publishing Group |
Profitability, Commercial Banks, Factors, Panel Data
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APA Style
Md. Rashedul Azim, Saifun Nahar. (2022). Factors Influencing the Profitability of Commercial Banks: An Empirical Study on Listed Banks in Stock Exchange of Bangladesh. International Journal of Economics, Finance and Management Sciences, 10(4), 210-216. https://doi.org/10.11648/j.ijefm.20221004.16
ACS Style
Md. Rashedul Azim; Saifun Nahar. Factors Influencing the Profitability of Commercial Banks: An Empirical Study on Listed Banks in Stock Exchange of Bangladesh. Int. J. Econ. Finance Manag. Sci. 2022, 10(4), 210-216. doi: 10.11648/j.ijefm.20221004.16
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Download@article{10.11648/j.ijefm.20221004.16,
author = {Md. Rashedul Azim and Saifun Nahar},
title = {Factors Influencing the Profitability of Commercial Banks: An Empirical Study on Listed Banks in Stock Exchange of Bangladesh},
journal = {International Journal of Economics, Finance and Management Sciences},
volume = {10},
number = {4},
pages = {210-216},
doi = {10.11648/j.ijefm.20221004.16},
url = {https://doi.org/10.11648/j.ijefm.20221004.16},
eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijefm.20221004.16},
abstract = {The important aspect of the banking industry in Bangladesh is successfully helping to face the financial crisis at present and in the future. This paper explores some factors that influence the profitability of commercial banks. The main objective was to important factors analyze performance decisions as the profitability of commercial banks in Bangladesh. The necessary data was collected from secondary sources. Profitability is measured by return on assets (ROA). A sample of 16 commercial banks out of 32 listed on both DSE and CSE for the period 2016-2020. Profitability measures were calculated and using statistical tools SPSS 25 version through Pearson’s correlation, descriptive analysis of variance and regression analysis were utilized in testing the hypotheses and to measure sample banks accounting to their different characteristics. However, the results indicate that there is a significant positive between ROA of banks TCA, TIA and TOEI variables, as well as a negative correlation with the NLBS variable. The regression model reveals that banks specific factors such as TCA, TIA, TOEA and NLBS are influencing factors for the changes in ROA. Further, it is required to strengthen the recommendation that empirical studies should be undertaken in the same field to find out what more specific factors could affect the profitability of commercial banks in Bangladesh.},
year = {2022}
}
TY - JOUR T1 - Factors Influencing the Profitability of Commercial Banks: An Empirical Study on Listed Banks in Stock Exchange of Bangladesh AU - Md. Rashedul Azim AU - Saifun Nahar Y1 - 2022/08/04 PY - 2022 N1 - https://doi.org/10.11648/j.ijefm.20221004.16 DO - 10.11648/j.ijefm.20221004.16 T2 - International Journal of Economics, Finance and Management Sciences JF - International Journal of Economics, Finance and Management Sciences JO - International Journal of Economics, Finance and Management Sciences SP - 210 EP - 216 PB - Science Publishing Group SN - 2326-9561 UR - https://doi.org/10.11648/j.ijefm.20221004.16 AB - The important aspect of the banking industry in Bangladesh is successfully helping to face the financial crisis at present and in the future. This paper explores some factors that influence the profitability of commercial banks. The main objective was to important factors analyze performance decisions as the profitability of commercial banks in Bangladesh. The necessary data was collected from secondary sources. Profitability is measured by return on assets (ROA). A sample of 16 commercial banks out of 32 listed on both DSE and CSE for the period 2016-2020. Profitability measures were calculated and using statistical tools SPSS 25 version through Pearson’s correlation, descriptive analysis of variance and regression analysis were utilized in testing the hypotheses and to measure sample banks accounting to their different characteristics. However, the results indicate that there is a significant positive between ROA of banks TCA, TIA and TOEI variables, as well as a negative correlation with the NLBS variable. The regression model reveals that banks specific factors such as TCA, TIA, TOEA and NLBS are influencing factors for the changes in ROA. Further, it is required to strengthen the recommendation that empirical studies should be undertaken in the same field to find out what more specific factors could affect the profitability of commercial banks in Bangladesh. VL - 10 IS - 4 ER -
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