What are the Stimulating Factors Affecting NPL in Banking Sector of Bangladesh Evidence from Econometric Exercises
Journal Title: International Journal of Trend in Scientific Research and Development - Year 2020, Vol 4, Issue 2
Abstract
A well organized, well structured and developed financial sector ensures efficient allocation of financial resources and perks up the competitiveness of the private sector, thereby promoting investment and growth in the real sector. The thrust of the development is to improve the regulatory and governance environment and to enhance the ability of bank owners, management and regulators, and the markets themselves to provide for better governance and regulation to achieve the objectives. In this perspective, improvement of the situation of non performing loan is important. A high volume of non performing loan can never be a boon for the economy. Credit to economy is the main source for financial support of business. On the other side, banks have limited investment tools for their deposits. This study present results from an econometric analysis, favorably Random Effect Model, using pooled panel data collected from the central bank of Bangladesh categorizing four sectors of banking based on the pattern of ownership. Based on the analysis of the bank specific microeconomic factors, which are selected on the availability from reliable sources, used as the regressors, it is observed that the liquidity and the management soundness is more significantly affect the Non performing loan NPL in Bangladesh. Therefore, the recommendation is placed towards formulation policy instruments in favor of solvency rather liquidity. In addition to that, the improvement of managerial efficiency must be sought as well. Ratna Biswas | Mohammed Nazrul Islam | Chanu Gopal Ghosh ""What are the Stimulating Factors Affecting NPL in Banking Sector of Bangladesh? Evidence from Econometric Exercises"" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-4 | Issue-2 , February 2020, URL: https://www.ijtsrd.com/papers/ijtsrd29861.pdf Paper Url : https://www.ijtsrd.com/economics/financial-economics/29861/what-are-the-stimulating-factors-affecting-npl-in-banking-sector-of-bangladesh-evidence-from-econometric-exercises/ratna-biswas
Authors and Affiliations
Financial Economics, NPL, Banking Sector, bank specific factors, liquidity, managerial efficiency
Keywords
Related Articles
- EP ID EP685889
- DOI -
- Views 120
- Downloads 0
Design and Fabrication of Automatic Speed Controller for Automobile
This project demonstrates idea of accident prevent in hill area and other danger area. In this system we use a transmitter antenna that placed on critical region and it send it particular frequency of speed in certain re...
Teachers’ Willingness and the Inclusion of Pupils with Hearing Impairment in Regular Primary Schools in Cameroon
The study examined teachers’ willingness and the inclusion of pupils with hearing impairment in regular primary schools in Cameroon. The objective that guided the study was transformed into a hypothesis namely to find if...
Analyzing Titanic Disaster using Machine Learning Algorithms
Titanic disaster occurred 100 years ago on April 15, 1912, killing about 1500 passengers and crew members. The fateful incidents still compel the researchers and analysts to understand what could have led to the survival...
Domestic Liquid Waste Purification and Recycling
Rapid industrialization and urbanization subsequently brought many variations in the environment and ecosystems in the world, as a result there is proportionate increase in the domestic waste generation in India. Growth...
Service Quality Impact on Customer Satisfaction: In the Study of Mongolian Banking Sector
This research contributes to the literature by considering a model for examining the quality of services in the banking industry. The results showing support for the hypothesis suggest that the five SERVQUAL factors can...