Bangladesh Bank Training Academy Journal

Abstract

Efficient functioning of banks plays a decisive role in bringing stability and growth of an economy. This study investigates the managerial factors that resolve bank’s efficiency. Only secondary data have been utilized in the present research work. The data have been gathered from sample banks' yearly reports from 2012 to 2016 based on a purposive sampling technique. These balanced panel data sets of 45 observations have been evaluated using some descriptive statistics (average, range, SD, CV), financial ratios, pairwise correlation, regression analysis, Analysis of variance (ANOVA), the natural logarithm and statistical software (SPSS 20). The factor-Bank Efficiency is identified by Net Asset Value per share (NAV); Managerial Factors are identified and calculated by Cost Efficiency Ratio (CER), Liquidity Ratio (LR), Credit Composition Ratio (CCR), Credit Risk Ratio (CRR), Capital Adequacy Ratio (CAR), and the Bank Size (BSZ). The key finding of this study is that CRR, CER and BSZ are the major managerial factors that resolve bank efficiency. Among the variables, both CRR & CER have significant but negative effect and BSZ has significant & positive effect on the efficiency of Bangladeshi commercial banks.