Financial performance of commercial banks in the post-reform era: Further evidence from Bangladesh
© 2018 Economic Society of Australia, Queensland This paper examines the financial performance of the commercial banks in Bangladesh in terms of profitability measures before, during and after a period of financial liberalization. Employing a panel data regression framework, the study uses bank-leve...
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| Format: | Journal Article |
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The Economic Society of Australia
2018
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| Online Access: | http://hdl.handle.net/20.500.11937/66251 |
| _version_ | 1848761276249931776 |
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| author | Robin, I. Salim, Ruhul Bloch, Harry |
| author_facet | Robin, I. Salim, Ruhul Bloch, Harry |
| author_sort | Robin, I. |
| building | Curtin Institutional Repository |
| collection | Online Access |
| description | © 2018 Economic Society of Australia, Queensland This paper examines the financial performance of the commercial banks in Bangladesh in terms of profitability measures before, during and after a period of financial liberalization. Employing a panel data regression framework, the study uses bank-level annual data from major commercial banks in Bangladesh for the period 1983–2012. Empirical results show financial reform has not had significant effect on the return on asset (ROA) or return on equity (ROE) for the banks, but the net interest margin (NIM) has increased. The results further indicate that capital strength and asset quality are the main drivers of profitability. Therefore, an appropriate banking policy aimed at raising capital base and asset quality is vital for ensuring a viable banking sector in Bangladesh. |
| first_indexed | 2025-11-14T10:29:06Z |
| format | Journal Article |
| id | curtin-20.500.11937-66251 |
| institution | Curtin University Malaysia |
| institution_category | Local University |
| last_indexed | 2025-11-14T10:29:06Z |
| publishDate | 2018 |
| publisher | The Economic Society of Australia |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | curtin-20.500.11937-662512018-04-30T02:49:02Z Financial performance of commercial banks in the post-reform era: Further evidence from Bangladesh Robin, I. Salim, Ruhul Bloch, Harry © 2018 Economic Society of Australia, Queensland This paper examines the financial performance of the commercial banks in Bangladesh in terms of profitability measures before, during and after a period of financial liberalization. Employing a panel data regression framework, the study uses bank-level annual data from major commercial banks in Bangladesh for the period 1983–2012. Empirical results show financial reform has not had significant effect on the return on asset (ROA) or return on equity (ROE) for the banks, but the net interest margin (NIM) has increased. The results further indicate that capital strength and asset quality are the main drivers of profitability. Therefore, an appropriate banking policy aimed at raising capital base and asset quality is vital for ensuring a viable banking sector in Bangladesh. 2018 Journal Article http://hdl.handle.net/20.500.11937/66251 10.1016/j.eap.2018.01.001 The Economic Society of Australia restricted |
| spellingShingle | Robin, I. Salim, Ruhul Bloch, Harry Financial performance of commercial banks in the post-reform era: Further evidence from Bangladesh |
| title | Financial performance of commercial banks in the post-reform era: Further evidence from Bangladesh |
| title_full | Financial performance of commercial banks in the post-reform era: Further evidence from Bangladesh |
| title_fullStr | Financial performance of commercial banks in the post-reform era: Further evidence from Bangladesh |
| title_full_unstemmed | Financial performance of commercial banks in the post-reform era: Further evidence from Bangladesh |
| title_short | Financial performance of commercial banks in the post-reform era: Further evidence from Bangladesh |
| title_sort | financial performance of commercial banks in the post-reform era: further evidence from bangladesh |
| url | http://hdl.handle.net/20.500.11937/66251 |