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Performance Evaluation of the Banking Sector in Bangladesh: A Comparative Analysis

Author

Listed:
  • Md. Ariful Islam
  • Mahmudul Hasan Siddiqui
  • Kh. Fahim Hossain
  • Luthful Karim

Abstract

Banking sector plays an important role in the economic development of a country especially for Bangladesh, a sound and efficient banking system is one of the most important preconditions to achieve economic development. At present, a total of 47 banks (4 SCBs, 4 DFIs, 30 PCBs and 9 FCBs) having 7246 branches are operating in Bangladesh with Tk. 4411.98billion total assets and Tk. 3329.08 billion deposits. The performance of 4types of banks needs to be compared with each other as well as the overall performance of banking sector needs to be compared with other countries. Quantitative comparison can be done on the basis of CAMEL ratio. CAMEL ratios mainly indicate the adequacy of the risk based capital, non-performing loan position, expenditure-income ratio, return on assets (ROA), return on equity (ROE), net interest income (NII), writing of debt, liquid assets, excess liquidity, etc. The study compares the 4 types of bank's time series performance on the basis of selected CAMEL ratios. This thesis paper is divided into five chapters. Chapter one comprises introduction. Chapter two includes overview of banking sector of Bangladesh. Performance of banking sector is contained in chapter three. Chapter four covers analysis and interpretation. The last chapter is about findings and conclusion.

Suggested Citation

  • Md. Ariful Islam & Mahmudul Hasan Siddiqui & Kh. Fahim Hossain & Luthful Karim, 2014. "Performance Evaluation of the Banking Sector in Bangladesh: A Comparative Analysis," Business and Economic Research, Macrothink Institute, vol. 4(1), pages 70-107, June.
    • Handle: RePEc:mth:ber888:v:4:y:2014:i:1:p:70-107
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    References listed on IDEAS

    as
    1. Mujeri, Mustafa K & Younus, Sayera, 2009. "An Analysis of Interest Rate Spread in the Banking Sector in Bangladesh," Bangladesh Development Studies, Bangladesh Institute of Development Studies (BIDS), vol. 32(4), pages 1-34, December.
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    Citations

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    Cited by:

    1. Anwar Hossain Repon & K.M Zahidul Islam, 2016. "Competition and Concentration in Bangladeshi Banking Sector: An Application of Panzar-Rosse Model," International Journal of Finance & Banking Studies, Center for the Strategic Studies in Business and Finance, vol. 5(1), pages 14-29, January.
    2. Liang-Han Ma & Jin-Chi Hsieh & Ying Li & Yung-Ho Chiu, 2021. "Evaluating Efficiency Change in Taiwan’s Financial Industry," SAGE Open, , vol. 11(2), pages 21582440211, April.
    3. Chinnasamy Agamudai Malarvizhi & Rezbin Nahar & Shamima Raihan Manzoor, 2018. "The Strategic Performance of Bangladeshi Private Commercial Banks on Post Implementation Relationship Marketing," International Journal of Emerging Trends in Social Sciences, Scientific Publishing Institute, vol. 2(1), pages 28-33.

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    More about this item

    Keywords

    Banking System; ROI; CAMEL; Liquidity; Performance;
    All these keywords.

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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