Impact of Profitability, Liquidity, Credit Risk, and Operating Efficiency on the Bank's Performance in Bangladesh

The primary goal of this study is to investigate the several risk aspects of Bangladesh’s banking industry, including credit risk, liquidity, profitability, and operational efficiency. A sample of thirty banks operating in Bangladesh was chosen for this specific objective. Among the banks, twenty are privately owned commercial banks, the state commercially owns four, and foreign entities own six. The analytical study was performed on data gathered from 2013 to 2019. The independent variables were capital adequacy, net interest margin, nonperforming loans, and return on assets. Instead, the loan-to-deposit ratio was examined. Correlation, analysis of variance, and multiple linear regression were used to examine dependent-independent variable relationships. According to data research, the Loan to debt ratio, capital adequacy ratio, asset return rates, and net interest margin are positively correlated. Nonperforming loans mostly lower loan-to-deposit ratios. The independent factors provide a 37.5% explanatory power for the dependent variable. Future studies are possible since the remaining 62.5% can be attributed to variables not considered in this analysis.