Journal Name: Journal of Business Studies
ISSN: ISSN 2410-8170| Title: | Impact of Profitability of Banking Industry on Gross Domestic Product (GDP) in Bangladesh |
| Author(s): | Md. Jahangir Alam Siddikee , Shahnaz Parvin & Md. Abdullah-Al-Mamun |
| Keywords: | Profitability, ratio, gross domestic product and impact. |
| Doi: | https://doi.org/10.58753/jbspust.4.1.2023.20 |
| Download: | https://pust.ac.bd/uploads/pust-journals/pdf/1726546048.pdf |
Abstract
Purpose: This study aims at exploring the impact of profitability using Return on Asset (ROA), Return on Equity (ROE), Expenditure-Income Ratio (EIR) and Net Interest Margin (MIR) on GDP in Bangladesh. Methodology: The data are collected from the annual report of Bangladesh Bank from 2004 to 2022 and the percentages of GDP growth are taken from World Bank for the same period. The data are analyzed through SPSS. In this study, the researchers have used the multiple regression models. Findings: This study found that there is a significant impact of Bank profitability on of GDP that had justified by p value of less than 0.05. More specifically, NIMSB, EIRFCB, TROE, ROESB, ROEPCB, ROEFCB, EIRSB and EIRFCB have the significant impact on GDP at the .01 level, ROESCB, ROAPCB, and EIRPCB have the significant impact on GDP at 5% level while, EIRSCB, EIRSB, ROEFCB, TEIR and ROASB have the significant impact on GDP at the .10 level. Practical Implications: Policymakers can use the insights from this research to make policies aimed at fostering a conducive environment for the Banking industry to thrive. Moreover, investors can apply the insights from this research to make informed investment decisions in the banking sector and other related industries. Originality: The research might offer fresh insights into how the profitability of the Banking sector influences GDP in Bangladesh. Research Limitation: This study focuses on banking sectors only and the finding of this research may not be fruitful for all financial institution in general.
