The efficacy of liquidity management of Bangladeshi commercial banks: does liquidity underscore bank profitability

Autor:	Nazneen Jahan Chaudhury
Rok vydání:	2020
Předmět:	Fuel Technology Return on assets Process Chemistry and Technology Risk-weighted asset Economic Geology Profitability index Tier 1 capital Business Monetary economics Liquidity risk Profit (economics) Market liquidity Panel data
Zdroj:	International Journal of Financial Services Management. 10:268
ISSN:	1741-8062 1460-6712
Popis:	This study has been designed for examining the effectiveness of liquidity management on the profit-making ability of Nationalised Commercial Banks (NCBs) in Bangladesh for the duration of 2008-2018. Six banks are chosen purposively as the sample. The study relies on a balanced panel data set of 66 observations which are gathered from the annual reports of banks and analysed by random effects regression model. The empirical results reveal that the liquidity affects the profitability of banks to a great extent. The value of R² is 75.21%, which explains a variation of 75.21% in profit-making ability in terms of Return on Assets. Among the liquidity measures, Tier 1 Capital/Risk Weighted Assets has highly significant positive effect; Assets/Shareholders Equity and Bank Size in terms of Deposits have highly significant negative effect; Market Rate of Interest has some significant negative effect on profit making ability of the selected banks.
Databáze:	OpenAIRE
Externí odkaz:	https://explore.openaire.eu/search/publication?articleId=doi_dedup___::609d2a731640ee19455b2ebfcbc00b45 https://doi.org/10.1504/ijfsm.2020.111107 Zobrazit plný text záznamu