Published
2016-12-12
Issue
Section
Articles
How to Cite
A Panel Data Analysis for Evaluating the Profitability of the Banking Sector in Bangladesh
Md. Thasinul Abedin
Graduated from Accounting & Information Systems, Faculty of Business Studies, University of Dhaka, Bangladesh
Md. Muzammel Dawan
Graduated from Accounting & Information Systems, Faculty of Business Studies, University of Dhaka, Bangladesh
DOI: https://doi.org/10.20448/journal.501/2016.3.2/501.2.163.171
Keywords: Profitability, Commercial banks, Investment, Loan and advances, Human resource, Efficiency, Money supply growth, Panel GMM, Pooled OLS, Random effect OLS.
Abstract
This study attempts to evaluate the profitability for a panel of 29 listed commercial banks of Bangladesh. Panel GMM approach along with Pooled OLS and Random Effect OLS has been applied to discover the impact of key factors namely investment in government securities and shares, loan and advances, human resource, efficiency, and economy money supply growth on profitability using the data set from 2005-2015 for each bank. The study has found that loan and advances, human resource, efficiency, and economy money supply growth have significant positive impact on profit where investment in government securities and shares has significant negative impact. Therefore, more loan and advances, more human resource, more efficiency, and more money supply growth unlike investment in government securities and shares will eventually boost up the profitability of banks.