Determinants of efficiency and stability: evidence from private commercial banks in Bangladesh
by Mohammad Dulal Miah; Helal Uddin; Nazifa Nusrat Ahmed
International Journal of Accounting and Finance (IJAF), Vol. 9, No. 2/3/4, 2019

Abstract: This research aims at examining the determinants of efficiency and stability of private commercial banks in Bangladesh. Data are collected from 20 private commercial banks over the period 2002-2013. Collected data are analysed using accounting ratio, stochastic frontier analysis (SFA), and ordinary least square (OLS) regression techniques. Analysis shows that average profit efficiency is significantly higher than average cost efficiency. Stability is positively related to profit efficiency. Provision for loans and leases (PLL) and statutory reserves appear to reduce banks' cost efficiency. Size is positively related to stability which proves that larger banks are more resilient to adverse financial conditions. Results also indicate that highly capitalised banks are more stable than thinly capitalised banks.

Online publication date: Mon, 20-Apr-2020

The full text of this article is only available to individual subscribers or to users at subscribing institutions.

 
Existing subscribers:
Go to Inderscience Online Journals to access the Full Text of this article.

Pay per view:
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.

Complimentary Subscribers, Editors or Members of the Editorial Board of the International Journal of Accounting and Finance (IJAF):
Login with your Inderscience username and password:

Username:        Password:          Forgotten your password?

Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.

If you still need assistance, please email subs@inderscience.com