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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Main Authors: Sufian, Fadzlan, Habibullah, Muzafar Shah
Format: Article
Language:English
Published: Taylor & Francis 2009
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Online Access:http://irep.iium.edu.my/5250/1/jbem_vol10_no3_207-217_sufian.pdf
http://irep.iium.edu.my/5250/
http://www.tandfonline.com/doi/abs/10.3846/1611-1699.2009.10.207-217#preview
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spelling my.iium.irep.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 REM 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
institution Universiti Islam Antarabangsa Malaysia
building IIUM Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider International Islamic University Malaysia
content_source IIUM Repository (IREP)
url_provider http://irep.iium.edu.my/
language English
topic HG1501 Banking
spellingShingle HG1501 Banking
Sufian, Fadzlan
Habibullah, Muzafar Shah
Determinants of bank profitability in a developing economy: empirical evidence from Bangladesh
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.
format Article
author Sufian, Fadzlan
Habibullah, Muzafar Shah
author_facet Sufian, Fadzlan
Habibullah, Muzafar Shah
author_sort Sufian, Fadzlan
title 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_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_sort determinants of bank profitability in a developing economy: empirical evidence from bangladesh
publisher Taylor & Francis
publishDate 2009
url http://irep.iium.edu.my/5250/1/jbem_vol10_no3_207-217_sufian.pdf
http://irep.iium.edu.my/5250/
http://www.tandfonline.com/doi/abs/10.3846/1611-1699.2009.10.207-217#preview
_version_ 1643605500249505792
score 13.211869