Relationship between Risk-taking, Capital Regulation and Bank Performance: Empirical Evidence from Bangladesh

Journal Title: Eurasian Journal of Business and Economics - Year 2018, Vol 11, Issue 22

Abstract

This paper attempts to analyse the relationships between risk-taking, capital regulation and performance in banking sector of Bangladesh. We use Generalized Methods of Moments (GMM) in an unbalanced panel data using 38 commercial banks of Bangladesh for a period of 2007-2016. The empirical results show a significant negative relation between risk taking and capital regulation. Results also reveal that there is a significant positive relation between capital regulation and performance, and a significant negative relation between risk and performance. This study provides various suggestions about risk management and capital adequacy for the regulators, stakeholders and government

Authors and Affiliations

Morshedur M. RAHMAN, Ali Arshad CHOWDHURY, Mouri DEY

Keywords

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  • EP ID EP441961
  • DOI 10.17015/ejbe.2018.022.02.
  • Views 81
  • Downloads 0

How To Cite

Morshedur M. RAHMAN, Ali Arshad CHOWDHURY, Mouri DEY (2018). Relationship between Risk-taking, Capital Regulation and Bank Performance: Empirical Evidence from Bangladesh. Eurasian Journal of Business and Economics, 11(22), 29-57. https://europub.co.uk/articles/-A-441961