THE RELATIONSHIP BETWEEN MARKET INTEREST RATE AND COMMERCIAL BANK FINANCIAL PERFORMANCE IN BANGLADESH
Journal: International Journal of Advanced Research (Vol.9, No. 01)Publication Date: 2021-01-20
Authors : Debashis Saha Prodip Chandra Bishwas; Mustofa Ahmed Sumon;
Page : 537-543
Keywords : Market Interest Rate Profitability Lending Rate Investment Bangladesh;
Abstract
The banking sector is the strongest partner of development for countries economy as it has a remarkable contribution to the countrys Gross Domestic Product. This study aims to find out the relationship between the market interest rate and commercial banks financial performance. As the banking industry of Bangladesh is a growing industry, therefore, it is very necessary to maintain a stronger level of profitability for the banks financial stability and soundness. Banks have some determinants that have a significant impact on their performance. The convenience sampling method is used to select the targeted sample. The study includes the time series data of eight years of fifteen commercial banks that are listed on the Dhaka Stock Exchange in Bangladesh. Multiple variable linear regression and correlation analysis are performed to find out the relationship of market interest rate with banks profitability with the help of statistical software, SPSS 25, and Microsoft excel. The study explored that the market interest rate has a significant positive impact on banks profitability. It is also found that the lending rate and interest rate spread are significantly correlated with the banks financial performance. The study recommended that banks should make their investment in a way so that they can make a higher level of profit margin that can enhance their efficiency of management as well as the financial soundness.
Other Latest Articles
- Green Marketing in India: Review of Literature
- Technology Enabled Brand Building by the Marketers: An Indian Perspective
- Antecedents of Consumer Response Towards Sales Promotion Technique in Organized Retailing: A Conceptual Overview
- CASE REPORTS OF JAPANESE ENCEPHALITIS:AN UNDERDIAGNOSED ENTITY IN AN ENDEMIC REGION OF UTTAR PRADESH, INDIA
- Determinants of E-CRM in Influencing Customer Satisfaction in the Banking Industry
Last modified: 2021-02-17 15:03:48