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Key Factors behind the Profitability of Conventional Banks in Bangladesh


 

This study is an empirical investigation of key factors behind the profitability of Conventional Banks in Bangladesh during 2009-2013. By using simple regression model the empirical findings suggest that capital ratio, total loan as a percentage of total assets and staff expenditure as a percentage of total assets are highly correlated with profitability whereas total expenditure as a percentage of total assets and cost income ratio are highly negatively correlated with profitability. The study also suggests that bank size, operating efficiency; savings deposits as a percentage of total assets, branch, liquidity ratio and assets management have no significant relationship with profitability.


Keywords

Profitability, Internal Determinants, Conventional Banks
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  • Key Factors behind the Profitability of Conventional Banks in Bangladesh

Abstract Views: 136  |  PDF Views: 0

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Abstract


This study is an empirical investigation of key factors behind the profitability of Conventional Banks in Bangladesh during 2009-2013. By using simple regression model the empirical findings suggest that capital ratio, total loan as a percentage of total assets and staff expenditure as a percentage of total assets are highly correlated with profitability whereas total expenditure as a percentage of total assets and cost income ratio are highly negatively correlated with profitability. The study also suggests that bank size, operating efficiency; savings deposits as a percentage of total assets, branch, liquidity ratio and assets management have no significant relationship with profitability.


Keywords


Profitability, Internal Determinants, Conventional Banks