Proceedings of 9th Asian Business Research Conference
20-21 December, 2013, BIAM Foundation, Dhaka, Bangladesh ISBN: 978-1-922069-39-9
Bank Specific, Industry Specific and Macroeconomic Determinants
of Commercial Bank Profitability: A Case of Bangladesh
Mohammad Nayeem Abdullah, Kamruddin Parvez and Salma Ayreen
The aim of this study is to examine the bank-specific, Industryspecific and macroeconomic determinants of 26 DSE listed Banks
bank’s profitability in Bangladesh over the time period from 2008 to
2011. The bank profitability is calculated by return on assets (ROA)
and Net interest Margin (NIM) as a function of bank-specific,
Industry specific and macroeconomic determinants. The empirical
results show that the profitability of Bangladesh banking sector is
explained by bank size, higher cost efficiency, capitalization, higher
concentration, regardless of ROA or NIM is used as dependent
variable. However, credit risk and ROA has negative relation,
whereas has a positively relation to NIM; inflation is significantly
related to NIM but not with ROA, and labor productivity and
nontraditional activity have a positive effect on ROA only.
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Mohammad Nayeem Abdullah, School of Business Department, Chittagong Independent University, Bangladesh,
email: nayeem30@yahoo.com,
Kamruddin Parvez,
Salma Ayreen,