Determinants of bank profitability in a developing economy: empirical evidence from Bangladesh
This study seeks to examine the performance of 37 Bangladeshi commercial banks between 1997 and 2004. The empirical findings of this study suggest that bank specific characteristics, in particular loans intensity, credit risk, and cost have positive and significant impacts on bank performance, while...
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| Format: | Article |
| Language: | English |
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Taylor & Francis
2009
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| Online Access: | http://irep.iium.edu.my/5250/ http://irep.iium.edu.my/5250/1/jbem_vol10_no3_207-217_sufian.pdf |
| _version_ | 1848776467556597760 |
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| author | Sufian, Fadzlan Habibullah, Muzafar Shah |
| author_facet | Sufian, Fadzlan Habibullah, Muzafar Shah |
| author_sort | Sufian, Fadzlan |
| building | IIUM Repository |
| collection | Online Access |
| description | This study seeks to examine the performance of 37 Bangladeshi commercial banks between 1997 and 2004. The empirical findings of this study suggest that bank specific characteristics, in particular loans intensity, credit risk, and cost have positive and significant impacts on bank performance, while non-interest income exhibits negative relationship with bank profitability. During the period under study the results suggest that the impact of size is not uniform across the various measures employed. The empirical findings suggest that size has a negative impact on return on average equity (ROAE), while the opposite is true for return on average assets (ROAA) and net interest margins (NIM). As for the impact of macroeconomic indicators, we conclude that the variables have no significant impact on bank profitability, except for inflation which has a negative relationship with Bangladeshi banks profitability. |
| first_indexed | 2025-11-14T14:30:33Z |
| format | Article |
| id | iium-5250 |
| institution | International Islamic University Malaysia |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-14T14:30:33Z |
| publishDate | 2009 |
| publisher | Taylor & Francis |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | iium-52502011-12-20T08:07:42Z http://irep.iium.edu.my/5250/ Determinants of bank profitability in a developing economy: empirical evidence from Bangladesh Sufian, Fadzlan Habibullah, Muzafar Shah HG1501 Banking This study seeks to examine the performance of 37 Bangladeshi commercial banks between 1997 and 2004. The empirical findings of this study suggest that bank specific characteristics, in particular loans intensity, credit risk, and cost have positive and significant impacts on bank performance, while non-interest income exhibits negative relationship with bank profitability. During the period under study the results suggest that the impact of size is not uniform across the various measures employed. The empirical findings suggest that size has a negative impact on return on average equity (ROAE), while the opposite is true for return on average assets (ROAA) and net interest margins (NIM). As for the impact of macroeconomic indicators, we conclude that the variables have no significant impact on bank profitability, except for inflation which has a negative relationship with Bangladeshi banks profitability. Taylor & Francis 2009 Article PeerReviewed application/pdf en http://irep.iium.edu.my/5250/1/jbem_vol10_no3_207-217_sufian.pdf Sufian, Fadzlan and Habibullah, Muzafar Shah (2009) Determinants of bank profitability in a developing economy: empirical evidence from Bangladesh. Journal of Business Economics and Management, 10 (3). pp. 207-217. ISSN 2029-4433 (O), 1611-1699 (P) http://www.tandfonline.com/doi/abs/10.3846/1611-1699.2009.10.207-217#preview DOI:10.3846/1611-1699.2009.10.207-217 |
| spellingShingle | HG1501 Banking Sufian, Fadzlan Habibullah, Muzafar Shah Determinants of bank profitability in a developing economy: empirical evidence from Bangladesh |
| title | Determinants of bank profitability in a developing economy: empirical evidence from Bangladesh |
| title_full | Determinants of bank profitability in a developing economy: empirical evidence from Bangladesh |
| title_fullStr | Determinants of bank profitability in a developing economy: empirical evidence from Bangladesh |
| title_full_unstemmed | Determinants of bank profitability in a developing economy: empirical evidence from Bangladesh |
| title_short | Determinants of bank profitability in a developing economy: empirical evidence from Bangladesh |
| title_sort | determinants of bank profitability in a developing economy: empirical evidence from bangladesh |
| topic | HG1501 Banking |
| url | http://irep.iium.edu.my/5250/ http://irep.iium.edu.my/5250/ http://irep.iium.edu.my/5250/ http://irep.iium.edu.my/5250/1/jbem_vol10_no3_207-217_sufian.pdf |