Bangladesh Bank Training Academy Journal

Abstract

This paper specifically focuses on the performance measures, and their determinants of the banks operating in Bangladesh. By using bank specific panel data over the period 2005-2014, the paper estimates the impacts of bank specific and macroeconomic factors on bank profitability, represented by return on equity (ROE). We find that non-performing loans (NPL), foreign loans (FL) and capital adequacy ratio (CAR) have statistically significant negative impact on bank profitability while non-traditional activities (NTA)2have significant positive impact on bank profitability with a very high magnitude.