Profitability Determinants of Private Commercial Banks in Bangladesh: An Internal Factor Analysis

Farhana Yasmin Liza

Abstract


The profitability of  banking sector can withstand negatively as well as contribute to bring the  stability in  financial system of a country. This study attempts to analyze the impact of  internal  determinants on performance of commercial banks by using the pooled Ordinary Least Square (POLS) method. In analyzing the impact the  study used the ROA, ROE, Total Deposit to  Assets,  Loans to  Assets, Equity to  Assets, Equity to Loans, Interest income to Assets, and  Investment to Assets as the internal important factors which have  impact  on performance on commercial bank. The empirical results  evidenced  that  capital adequacy has negative impact on profitability while the remaing all factors have positive impact   on the profitability .  

 


Keywords


Profitability of Commercial Bank, Return on Assets, Return on Equity, Correlation, Pooled OLS

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