FINANCIAL SOUNDNESS MEASUREMENT AND TREND ANALYSIS OF COMMERCIAL BANKS IN BANGLADESH: AN OBSERVATION OF SELECTED BANKS
Journal Title: European Journal of Business and Social Sciences - Year 2016, Vol 4, Issue 10
Abstract
The financial sector is one of the most significant sectors for any country, especially if a country is a developing in nature. In such an environment, banking sector plays the vital role to strengthen the economic conditions. Economic growth and international business is increasing in Bangladesh and commercial banks especially private sectors play the major roles. Thus it becomes important to measure the financial soundness of the private banks in order to judge their respective position. The study was conducted to measure the financial soundness of selected private commercial banks of Bangladesh for the period 2006 to 2014. In this paper, an attempt was made to analyze the financial soundness and trend analysis of selected banks using different statistical tools and financial indicators. The study reveals that different financial indicators showed upward trends during the period 2006 to 2014. The study also made a rank of the selected commercial banks based on financial indicators. It was found that a bank with higher deposits, loans & advances, investments, branches, employees does not always mean that has better profitability performance. The research focused on general financial situation (Deposit, Loans & Advances, investment, income, ROA, ROE) forecasting through trend analysis of the historical data available from 2006 to 2014. The analysis also recommends measures that could be adopted by banks to ensure soundness in their operation.
Authors and Affiliations
Md. Abdul Kaium Masud| Assistant Professor, department of Business Administration, Noakhali Science and Technology University, Sonapur- Noakhali, Bangladesh -3814, Email: masudbd08@gmail.com, Md. Mahbubul Haq (Corresponding Author)| Lecturer, department of Business Administration, Noakhali Science and Technology University, SonapurNoakhali, Bangladesh -3814, Email: chayon_222@yahoo.com Mobile: +88-01711063417
Keywords
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- EP ID EP10706
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