Banking Industry in Bangladesh: Its Contribution and Performance
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Banking Sector in Bangladesh: Its Contribution and
Sharif Rayhan Siddique*
A F M Mafizul Islam**
Abstract: The paper attempted to highlight the prospects and opportunities of banking sector in
Bangladesh. Like other economic sector in the country, Banking is one of major sectors which contribute to the national economy. The study tried to furnish the overview of the performances of banking sector and also find out the comparison among the various categories of banks with respect to the Profitability.
Finally, the paper tried to establish the linear relationship among the various variables and net profit of the banking sector.
Banking sector of Bangladesh is one of the major sectors, which contributes significantly to the national economy. The sector comprises a number of banks in various categories.
Considering ownership the sector can be classified in to four major categories - such as
Nationalized Commercial Banks (NCBs), Specialized Banks (SPBs), Private Commercial
Banks (PCBs), and Trans-National Banks (TNBs). The list of banks under different categories is furnished in the appendix - A.
The study has been initiated to analyze the contribution of this sector and its profitability.
This paper attempts to provide an overview of the contribution of the sector in national economy. The paper also analyzes the profitability of different categories of banks. Finally a regression analysis has been done to examine the relationship between the profitability and other variables.
2. Contribution of the Banking sector in National Economy
Economic development - of the country is executed by the contribution of various economic sectors. Like agriculture, industries, power, transport, trade service, etc., banking sector also has a contribution to the economic growth. In mid 80s Banking and Insurance contributed 1.69% of GDP
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