Since 2014
Relationship between Liquidity Risk and Net Interest Margin of Conventional Banks in Bangladesh
Asian Business Review
View Archive Info| Field | Value | |
| Title |
Relationship between Liquidity Risk and Net Interest Margin of Conventional Banks in Bangladesh
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| Creator |
Chowdhury, A. N. M. Minhajul Haque; MBA Student, Department of Finance and Banking, Hajee Mohammad Danesh Science and Technology University, Dinajpur-5200, BANGLADESH
Siddiqua, Ayesha; MBA Student, Department of Finance and Banking, Hajee Mohammad Danesh Science and Technology University, Dinajpur-5200, BANGLADESH Chowdhury, Abu Sayed Md. Mahmudul Haque; Senior Lecturer, Department of English, University of Development Alternative, Dhaka-1209, BANGLADESH |
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| Subject |
Conventional banks, net interest margin, liquidity risk, profitability
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| Description |
Net interest margin (NIM) of a bank depends on several firm-specific factors. The aim of the study was to determine the effect of liquidity risk on the profitability indicating variable NIM of the conventional banks in Bangladesh. Seven banks were analyzed using the annual reports of the banks for the period of 2011 to 2015. Researchers applied descriptive statistics, correlation, and regression analysis to find out the results. The findings of the study provided evidence that cash to asset (CA) ratio had a negative relationship with NIM but a loan to asset (LA) ratio had a positive effect on the NIM. There was also a significant positive relationship between NIM and loan to deposit (LD) ratio. From the regression analysis it was clear that the LD, CA, and LA were able to explain the changes of NIM of the banks. JEL Classifications: G 21 Handle: http://hdl.handle.net/20.500.11903/abr.v6n3.7
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| Publisher |
Asian Business Consortium
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| Contributor |
—
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| Date |
2016-12-19
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| Type |
info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion — |
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| Format |
application/pdf
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| Identifier |
http://journals.abc.us.org/index.php/abr/article/view/888
10.18034/abr.v6i3.888 |
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| Source |
Asian Business Review; Vol 6, No 3 (2016): 15th Issue; 175-178
2305-8730 2304-2613 |
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| Language |
eng
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| Relation |
http://journals.abc.us.org/index.php/abr/article/view/888/721
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| Rights |
Copyright (c) 2016 A. N. M. Minhajul Haque Chowdhury, Ayesha Siddiqua, Abu Sayed Md. Mahmudul Haque Chowdhury
http://creativecommons.org/licenses/by-nc/4.0 |
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