Determinants of bank profitability in a developing economy: Empirical evidence from Bangladesh

Journal of Business Economics and Management

Volumn 10, Issue 3, 2009, Pages 207-217

  Sufian, Fadzlan ^a   Habibullah, Muzafar Shah ^a  

^a UNIVERSITY PUTRA MALAYSIA   (Malaysia)

Author keywords

Bangladesh; Banks; Multivariate regression analysis; Profitability

Indexed keywords

EID: 73449115668     PISSN: 16111699     EISSN: None     Source Type: Journal    
DOI: 10.3846/1611-1699.2009.10.207-217     Document Type: Article

References (46)

1. Akhavein, J.; Berger, A. N.; Humphrey, D. B. 1997. The effects of megamergers on efficiency and prices: Evidence from a bank profit function, Review of Industrial Organization 12(1): 95-139. doi: 10.1023/A: 1007760924829
2. Albertazzi, U.; Gambacorta, L. 2008. Bank profitability, the business cycle, Journal of Financial Stability, forthcoming. doi:10.1016/j.jfs. 2008.10.002
3. Athanasoglou, P. P.; Brissimis, S. N.; Delis, M. D. 2007. Bank specific, industry specific and macroeconomic determinants of bank profitability, Journal of International Financial Markets, Institutions and Money 18(2): 121-136. doi:10.1016/j.intfin.2006.07.001
4. Ball, S.; Feltenstein, A. 2001. Bank failures and fiscal austerity: Policy prescriptions for a developing country, Journal of Public Economics 82(2): 247-270. doi: 10.1016/S0047-2727(00)00144-4
5. Ben Naceur, S.; Goaied, M. 2008. The determinants of commercial bank interest margin and profitability: Evidence from Tunisia, Frontiers in Finance and Economics 5(1): 106-130.
6. BenNaceur, S.; Omran, M. 2008. The Effects of Bank Regulations, Competition and Financial Reforms on Mena Banks' Profitability. Working Paper. Economic Research Forum.
7. Berger, A. N.; DeYoung, R. 1997. Problem loans and cost efficiency in commercial banks, Journal of Banking and Fi- nance 21(6): 849-870. doi:10.1016/S0378-4266(97)00003-4
8. Berger, A. N.; Hanweck, G. A.; Humphrey, D. B. 1987. Competitive viability in banking: Scale scope and product mix economies, Journal of Monetary Economics 20(3): 501-520. doi:10.1016/0304-3932(87)90039-0
9. Berger, A. N. 1995. The relationship between capital and earnings in banking, Journal of Money, Credit and Banking 27(2): 432-456. doi: 10.2307/2077877
10. Bhuyan, R.; Williams, D. L. 2006. Operating performance of the US Commercial Banks after IPOs: An empirical evidence, Journal of Commercial Banking and Finance 5(1/2): 68-95.
11. Bikker, J.; Hu, H. 2002. Cyclical patterns in profits, provisioning and lending of banks and procyclicality of the New Basel Capital Requirements, BNL Quarterly Review 221: 143-175.
12. Bourke, P. 1989. Concentration and other determinants of bank profitability in Europe, North America and Australia, Journal of Banking and Finance 13(1): 65-79. doi: 10.1016/0378-4266(89)90020-4
13. Boyd, J. and Runkle, D. 1993. Size and performance of banking firms: Testing the predictions theory, Journal of Monetary Economics 31(1): 47-67. doi:10.1016/0304-3932(93)90016-9
14. Chantapong, S. 2005. Comparative study of domestic and foreign bank performance in Thailand: The regression analysis, Economic Change and Restructuring 38(1): 63-83. doi: 10.1007/sl 0644-005-4523-5
15. Claessens, S.; Dermiguc Kunt, A.; Huizinga, H. 2001. How does foreign banking entry affect domestic banking markets? Journal of Banking and Finance 25(5): 891-911. doi: 10.1016/S0378-4266(00)00102-3
16. Cooper, M.; Jackson, W.; Patterson, G. 2003. Evidence of predictability in the cross section of bank stock returns, Journal of Banking and Finance 27(5): 817-850. doi:10.1016/S0378-4266(01)00263-l
17. De Bandt, O.; Davis, P. 2000. Competition, contestability and market structure in European banking sectors on the eve of EMU, Journal of Banking and Finance 24(6): 1045- 1066. doi:10.1016/S0378-4266(99)00117-X
18. Dermiguc Kunt, A.; Huizinga, H. 1999. Determinants of commercial bank interest margins and profitability: Some International Evidence, World Bank Economic Review 13(2): 379-108.
19. Dermiguc Kunt, A.; Huizinga, H. 2001. Financial structure and bank profitability, in Dermiguc Kunt, A. and Levine, R. (Eds.). Financial Structure and Economic Growth: A Cross Country Comparison of Banks, Markets and Development. Cambridge, MA: MIT Press.
20. DeYoung, R.; Rice, T. 2004. Non-interest income and financial performance at US Commercial Banks, Financial Review 39(1): 101-127. doi: 10.111 l/j.0732-8516.2004.00069.x
21. Duca, J.; McLaughlin, M. 1990. Developments affecting the profitability of commercial banks, Federal Reserve Bulletin.
22. Eichengreen, B.; Gibson, H. D. 2001. Greek Banking at the Dawn of the New Millennium. CEPR Discussion Paper.
23. Goddard, J.; Molyneux, P.; Wilson, J. 2004. Dynamic of growth and profitability in banking, Journal of Money, Credit and Banking 36(6): 1069-1090. doi:10.1353/mcb.2005.0015
24. Guru, B. K.; Staunton, J.; Balashanmugam, B. 2002. Determinants of Commercial Bank Profitability in Malaysia. Working Paper. Multimedia University.
25. Hassan, M. K.; Bashir, A. H. M. 2003. Determinants of Islamic banking profitability, in The 10th ERF Annual Conference. Morocco, December 16-18.
26. Hauner, D. 2005. Explaining efficiency differences among large German and Austrian Banks, Applied Economics 37(9): 969-980. doi:10.1080/ 00036840500081820
27. Heffernan, S.; Fu, M. 2008: The Determinants of Bank Performance in China. EMG Working Paper Series No. 03- 2008.
28. Hirtle, B. J.; Stiroh, K. J. 2007. The return to retail and the performance of US Banks, Journal of Banking and Finance 31(4): 1101-1133. doi:10.1016/j.jbankfm.2006.10.004
29. Ho, M. T.; Tripe, D. 2002. Factors influencing the performance of foreign owned banks in New Zealand, Journal of International Financial Markets, Institutions and Money 12(4/5): 341-357.
30. Isik, I.; Hassan, M. K. 2003. Efficiency, ownership and market structure, corporate control and governance in the Turkish Banking Industry, Journal of Business Finance and Accounting 30(9/10): 1363-1421. doi:10.1111/j.0306- 686X.2003.05533.x
31. Kennedy, P. 2008. A Guide to Econometrics. Sixth edition. Maiden, Massachusetts: Blackwell Publishing.
32. Kosmidou, K. 2008. The determinants of banks' profits in Greece during the period of EU financial integration, Managerial Finance 34(3): 146-159. doi:10.1108/03074350810848036
33. Kosmidou, K.; Zopounidis, C. 2008. Measurement of bank performance in Greece, South Eastern Europe Journal of Economics 6(1): 79-95.
34. Kosmidou, K.; Pasiouras, F.; Tsaklanganos, A. 2007. Domestic and multinational determinants of foreign bank profits: The Case of Greek Banks operating abroad, Journal of Multinational Financial Management 17(1): 1-15. doi:10.1016/j.mulfm.2006.02.002
35. Miller, S. M.; Noulas, A. 1997. Portfolio mix and large bank profitability in the USA, Applied Economics 29(4): 505-512. doi: 10.1080/000368497326994
36. Molyneux, P. and Thornton, J. 1992. Determinants of European Bank Profitability: A Note, Journal of Banking and Finance 16(6): 1173-1178. doi:10.1016/0378-4266(92)90065-8
37. Molyneux, P. 1993. Structure and Performance in European Banking. Mimeo University of Wales Bangor.
38. Neely, M.; Wheelock, D. 1997. Why does bank performance vary across states? Federal Reserve Bank of St. Louis Review, 27-38.
39. Pasiouras, F.; Kosmidou, K. 2007. Factors influencing the profitability of domestic and foreign commercial banks in the European Union, Research in International Business and Finance 21(2): 222-237. doi:10.1016/j.ribaf.2006. 03.007
40. Rivard, R. J.; Thomas, C. R. 1997. The effect of interstate banking on large bank holding company profitability and risk, Journal of Economics and Business 49(1): 61-76. doi:10.1016/S0148-6195(96)00041-0
41. Sathye, M. 2001. X-Efficiency in Australian Banking: An empirical investigation, Journal of Banking and Finance 25(3): 613-630. doi:10.1016/S0378-4266(00)00156-4
42. Staikouras, C; Wood, G. 2003. The determinants of bank profitability in Europe, in The European Applied Business Research Conference. Venice, June 9-13.
43. Staikouras, C.; Mamatzakis, E.; Koutsomanoli-Filippaki, A. 2008. An empirical investigation of operating performance in the new European banking landscape, Global Finance Journal 19(1): 32-45. doi:10.1016/j.gfj.2008. 01.001
44. Stiroh, K. J.; Rumble, A. 2006. The dark side of diversification: The Case of US Financial Holding Companies, Journal of Banking and Finance 30(8): 2131-2161. doi: 10.1016/j.jbankfm.2005.04.030
45. White, H. J. 1980. A heteroscedasticity-consistent covari- ance matrix estimator and a direct test for heteroscedasticity, Econometrica 48(4): 817-838. doi: 10.2307/1912934
46. Williams, B. 2003. Domestic and international determinants of bank profits: Foreign banks in Australia, Journal of Banking and Finance 27'(6): 1185-1210. doi: 10.1016/S0378-4266(02)00251 -0