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Conventional and Islamic Bank Stability in Bangladesh using NPL Model

Author

Listed:
  • Kh Khaled Kalam

    (Finance and Human Resource Management Lecturer, Business School, Shandong Xiehe University, China)

  • An-Nisha Khatoon

    (Senior Executive, Training & Operation, Time ASL Training Institute, Times Group, Bangladesh)

Abstract

Islamic Banking system is a rapidly growing financial system over the Conventional Banking system in Bangladesh. As the conventional banks are more profit-maximizing regarding based on loan and mortgage. This study focused on the Non-Performing Loan and Efficiency for both Conventional and Islamic Banking sector in Bangladesh from 2008 to 2018. The study evaluates by analyzing Total Asset, Loan to asset, Inflation, Income Diversity, GDP and Cost to income. The last part also analysis the Descriptive, Correlations and Regression for the Data. The study explained that the inflation rate has a significantly negative impact on non-performing loan of the conventional banking system in Bangladesh. On the other hand, Islamic financing system is more efficient and convenient for the Bangladesh environment regarding non-performing loan management.

Suggested Citation

  • Kh Khaled Kalam & An-Nisha Khatoon, 2020. "Conventional and Islamic Bank Stability in Bangladesh using NPL Model," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 4(6), pages 26-35, June.
    • Handle: RePEc:bcp:journl:v:4:y:2020:i:6:p:26-35
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    References listed on IDEAS

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    3. Mumtaz Hussain & Asghar Shahmoradi & Rima Turk, 2016. "An Overview of Islamic Finance," Journal of International Commerce, Economics and Policy (JICEP), World Scientific Publishing Co. Pte. Ltd., vol. 7(01), pages 1-28, February.
    4. Suren Basov & M. Ishaq Bhatti, 2016. "Islamic Finance in the Light of Modern Economic Theory," Palgrave Macmillan Books, Palgrave Macmillan, number 978-1-137-28662-8.
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