IDEAS home Printed from https://ideas.repec.org/p/osf/osfxxx/5g2q4.html
   My bibliography  Save this paper

Effect of Liquidity and Bank Size on the Profitability of Commercial Banks in Bangladesh

Author

Listed:
  • Asian Business Consortium
  • Parvin, Shahnaz
  • Chowdhury, A. N. M. Minhajul Haque
  • Siddiqua, Ayesha
  • Ferdous, Jannatul

Abstract

Nowadays Modern economy cannot be thought without banks. The banks of Bangladesh have great contributions to the development of this country. This study concentrated on the commercial banks in Bangladesh to determine the effect of liquidity and bank size on the profitability of the banks during the year 2011-2015. Seven commercial banks were selected and descriptive as well as correlations analysis statistics were used to conduct the study. Data from the annual reports of the banks were analyzed. The results stated that loan to asset ratio and bank size had a positive relation with return on asset (ROA) which was the indicator of profitability. The results also showed that deposit to asset ratio had a negative impact on the ROA of the selected banks. Although there were relationships among liquidity, bank size and profitability but liquidity and bank size did not have a significant influence on the profitability of the banks.

Suggested Citation

  • Asian Business Consortium & Parvin, Shahnaz & Chowdhury, A. N. M. Minhajul Haque & Siddiqua, Ayesha & Ferdous, Jannatul, 2019. "Effect of Liquidity and Bank Size on the Profitability of Commercial Banks in Bangladesh," OSF Preprints 5g2q4, Center for Open Science.
    • Handle: RePEc:osf:osfxxx:5g2q4
    DOI: 10.31219/osf.io/5g2q4
    as

    Download full text from publisher

    File URL: https://osf.io/download/5c4f41580d1c9e00194c962d/
    Download Restriction: no
    File URL: https://libkey.io/10.31219/osf.io/5g2q4?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Al Shahrani Saad M & Al Shahrani Saad M, 2016. "The Impact of Organizational Factors on Financial Performance: Building a Theoretical Model," International Journal of Management Science and Business Administration, Inovatus Services Ltd., vol. 2(7), pages 51-56, June.
    2. Al Shahrani Saad M & Al Shahrani Saad M, 2016. "The Impact of Organizational Factors on Financial Performance: Building a Theoretical Model," International Journal of Innovation and Economic Development, Inovatus Services Ltd., vol. 2(7), pages 51-56, June.
    3. Vincent Okoth Ongore & Gemechu Berhanu Kusa, 2013. "Determinants of Financial Performance of Commercial Banks in Kenya," International Journal of Economics and Financial Issues, Econjournals, vol. 3(1), pages 237-252.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Aliu Oguntade Fatai & Raymond Osi Alenoghena, 2024. "The Role of Deposit Growth in The Productivity of Deposit Money Banks in Nigeria: Case Study of Union and Wema Banks in Lagos State," International Journal of Research and Scientific Innovation, International Journal of Research and Scientific Innovation (IJRSI), vol. 10(12), pages 234-246, January.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Yusheng Kong & Mary Donkor & Mohammed Musah & Joseph Akwasi Nkyi & George Oppong Appiagyei Ampong, 2023. "Capital Structure and Corporates Financial Sustainability: Evidence from Listed Non-Financial Entities in Ghana," Sustainability, MDPI, vol. 15(5), pages 1-20, February.
    2. Md. Mehedi Hasan & Dr. Md. Hasan Uddin & Azom Khan, 2024. "Impacts of Cost of Capital on Firm Value and Profitability: Insights from the Cement Industry in Bangladesh," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 8(1), pages 890-899, January.
    3. Rachael Wambui & Stephen Muathe, 2023. "From Attention to Action: Entrepreneurial Networks and Performance of Women-Owned Enterprises: A Theoretical Review," International Journal of Business and Management, Canadian Center of Science and Education, vol. 16(2), pages 1-82, February.
    4. Paul Munene Muiruri & Florence S. Memba & Agnes Njeru, 2015. "Moderating Effects of Bank Ownership on the Relationship between Securitization Uptake and Financial Performance of Commercial Banks in Kenya," Academic Journal of Economic Studies, Faculty of Finance, Banking and Accountancy Bucharest,"Dimitrie Cantemir" Christian University Bucharest, vol. 1(2), pages 24-43, June.
    5. Alihodžić Almir, 2020. "The Factors Affecting Bank Profitability: the Case of Bosnia and Herzegovina," Financial Sciences. Nauki o Finansach, Sciendo, vol. 25(2-3), pages 1-23, September.
    6. Maria Elisabete Duarte Neves & Maria Do Castelo Gouveia & Catarina Alexandra Neves Proença, 2020. "European Bank’s Performance and Efficiency," JRFM, MDPI, vol. 13(4), pages 1-17, April.
    7. Pejman Ebrahimi & Maria Fekete-Farkas & Parisa Bouzari & Róbert Magda, 2021. "Financial Performance of Iranian Banks from 2013 to 2019: A Panel Data Approach," JRFM, MDPI, vol. 14(6), pages 1-15, June.
    8. Ozili, Peterson, K, 2016. "Bank Profitability and Capital Regulation: Evidence from Listed and non-Listed Banks in Africa," MPRA Paper 75856, University Library of Munich, Germany.
    9. Gahé Zimy Samuel Yannick, 2021. "Determinants of Banks’ Technical Efficiency in Loans Allocation: Evidence from Côte d’Ivoire," International Journal of Economics and Finance, Canadian Center of Science and Education, vol. 13(1), pages 124-124, January.
    10. Mosab I. Tabash & Eissa A. Al-Homaidi & Anwar Ahmad & Najib H.S. Farhan, 2020. "Factors affecting financial performance of Indian firms: an empirical investigation of firms listed on Bombay Stock Exchange," International Journal of Economic Policy in Emerging Economies, Inderscience Enterprises Ltd, vol. 13(2), pages 152-172.
    11. Hua Song & Yudong Yang & Zheng Tao, 2020. "How different types of financial service providers support small- and medium- enterprises under the impact of COVID-19 pandemic: from the perspective of expectancy theory," Frontiers of Business Research in China, Springer, vol. 14(1), pages 1-27, December.
    12. Santosh Kumar Das & Khushboo Uppal, 2021. "NPAs and profitability in Indian banks: an empirical analysis," Future Business Journal, Springer, vol. 7(1), pages 1-9, December.
    13. Wai‐Peng Wong & Qiang Deng & Ming-Lang Tseng & Loo‐Hay Lee & Chee‐Wooi Hooy, 2014. "A Stochastic Setting To Bank Financial Performance For Refining Efficiency Estimates," Intelligent Systems in Accounting, Finance and Management, John Wiley & Sons, Ltd., vol. 21(4), pages 225-245, October.
    14. Mary Nelima LYANI SINDANI, 2018. "Effects of Accounts Receivable Financing Practices on Growth of SMEs in Kakamega County, Kenya," Expert Journal of Finance, Sprint Investify, vol. 6, pages 1-11.
    15. Ameur Imane & Zerouti Messaoud & Bouchetara Mehdi, 2023. "Internal Determinants Of Profitability In Public Algerian Banks," Journal of Financial Studies, Institute of Financial Studies, vol. 8(Special-J), pages 95-116, June.
    16. Philip Kibwage Ondiba & Prof. Thomas Kimeli Cheruiyot & Prof. Timothy Sulo, 2020. "Effect of training on corporate financial performance of commercial banks in Kenya," Journal of Applied Finance & Banking, SCIENPRESS Ltd, vol. 10(3), pages 1-1.
    17. Gathuru Edmund Kanyugi & Patrick Gudda & Maurice Ombok & Patrick Kibati, 2019. "Banking Agency Adoption and its Effect on Banks Deposits of Commercial Banks in Kenya," International Journal of Academic Research in Accounting, Finance and Management Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Accounting, Finance and Management Sciences, vol. 9(3), pages 251-263, July.
    18. David Haritone Shikumo & Oluoch Oluoch & Joshua Matanda Wepukhulu, 2020. "Effect of Long-Term Debt on the Financial Growth of Non-Financial Firms Listed at the Nairobi Securities Exchange," Papers 2010.12596, arXiv.org, revised Nov 2021.
    19. Morrisson Kaunda Mutuku & Stephen Muathe & Rosemary James, 2019. "Effect of E-customization Capability on Financial Performance of Commercial Banks in Kenya," International Journal of Finance & Banking Studies, Center for the Strategic Studies in Business and Finance, vol. 8(1), pages 10-20, January.
    20. Mehmed Ganić & BETÜL Ismić & Ognjen Riđić, 2015. "What drives the profitability of the banking sector? An Empirical evidence from Bosnia &Herzegovina," Romanian Economic Journal, Department of International Business and Economics from the Academy of Economic Studies Bucharest, vol. 18(55), pages 39-56, March.

    More about this item

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:osf:osfxxx:5g2q4. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: OSF (email available below). General contact details of provider: https://osf.io/preprints/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.