Strategies to determine the determinants of financial performance of conventional and Islamic commercial banks: Evidence from Bangladesh
Issued Date
2022-12-01
Resource Type
eISSN
25723170
DOI
Scopus ID
2-s2.0-85129018107
Journal Title
Business Strategy and Development
Volume
5
Issue
4
Start Page
405
End Page
423
Rights Holder(s)
SCOPUS
Bibliographic Citation
Business Strategy and Development Vol.5 No.4 (2022) , 405-423
Suggested Citation
Chowdhury E.K., Dhar B.K., Thanakijsombat T., Stasi A. Strategies to determine the determinants of financial performance of conventional and Islamic commercial banks: Evidence from Bangladesh. Business Strategy and Development Vol.5 No.4 (2022) , 405-423. 423. doi:10.1002/bsd2.207 Retrieved from: https://repository.li.mahidol.ac.th/handle/20.500.14594/83959
Title
Strategies to determine the determinants of financial performance of conventional and Islamic commercial banks: Evidence from Bangladesh
Author(s)
Author's Affiliation
Other Contributor(s)
Abstract
This paper aims to determine the role of bank-centric, industry-centric and macroeconomic determinants on the financial performance of conventional and Islamic commercial banks in Bangladesh. The financial performance of 28 conventional and 8 Islamic commercial banks was measured by Return on Assets, Return on Equity, Net Interest Margin, and the Pre-provision Profit Ratio. Generalized method of moments and pooled, fixed effects and random effects estimates have been applied considering panel data from 2015 to 2019. It is observed that the bank-centric, industry-centric and macroeconomic determinants have a mixed impact on the financial performance of conventional and Islamic banks due to policy variations, the sentiment of the public toward an Islamic banking system, and the monitoring capacity of the regulatory authority. Despite having favorable conditions, the performance of Islamic banks is not as satisfactory as conventional banks. To have accurate performance indications, there should have a level playing ground for both types of banks.