Research
Privatization, Financial Liberalization, and Bank Performance: Evidence from Bangladesh
This study examines the impact of privatization and financial liberalization on the banking sector and the contribution of private commercial banks in Bangladesh economy. We use most of the CAMELS measures to find out the performance of sample bank categories based on capital adequacy, asset quality, management efficiency, earnings and profitability, and liquidity. We examine 495 observations collected from 55 banks including 6 state-owned banks, 40 private commercial banks, and 9 foreign commercial banks during 2009-2017. This paper mostly agrees with the existing literature that privatization and financial liberalization has a significant positive influences on banking sectors performance. This paper also discloses that private commercial banks belong the sound management skills rather than other categories of the banks except for foreign commercial banks in Bangladesh. The findings of the research will help the government and the central bank to take a crucial financial decision to improve the financial performance of the banking sector in Bangladesh.
The Impact of Corporate Governance on Bank Performance: Empirical Evidence from Bangladesh
This paper effort to find out the impact of corporate governance practices on bank performance in Bangladesh. In this paper, we examine 85 observations from 17 publicly traded commercial banks listed in the Dhaka Stock Exchange (DSE) throughout 2013-2017. We used the econometric model and pooled ordinary least square regression analysis to find out the correlations and regression among independent variables (size of the board, board composition, and chief executive officer status) and dependent variables (return on asset, return on equity and earnings per share). This research reveals that the board of director has a significant positive impact on ROA, ROE, and EPS. Independent board of director has a significant positive impact on ROE and EPS. Chief executive officer has a significant positive impact on ROA. Also, most of the cases large bank size positively affecting the performance of Bangladeshi bank. Finally, there is a significant positive relationship between corporate governance and bank performance in Bangladesh. The findings of the paper will help the Bangladeshi banks to ensure proper corporate governance practices to optimize the performance of the banks leads to maximization of the stockholder's wealth.
