Anti Essays offers essay examples to help students with their essay writing.

Sign Up

Performance of Commercial Bank in Bangladesh Essay

Open Document

Below is an essay on "Performance of Commercial Bank in Bangladesh" from Anti Essays, your source for research papers, essays, and term paper examples.

Performance of Commercial Banks (Industry players):
The commercial banking system dominates Bangladesh's financial sector. Bangladesh Bank is the Central Bank of Bangladesh and the chief regulatory authority in the sector. The banking system is composed of four state-owned commercial banks, five specialized development banks, thirty private commercial Banks and nine foreign commercial banks. Among them performance of Five commercial banks namely Prime Bank Limited, Mercantile Bank limited, Bank Asia Limited and AB Bank Limited for last five years is given below. Since we did not get the annual report of Agrani Bank limited of year 2012, its performance for four years is briefly discussed. All of them are top commercial banks in Bangladesh.
Net Interest Margin: (interest Income – Interest Expenses)/ net assets
Net interest income is the difference between gross interest income and interest expenses and is measured as a percentage of assets. It has a major effect on the bank’s performance.

From the figure we can see that net interest margin of these five banks fluctuated more or less. This ratio of prime bank limited fluctuated more than the other four banks and increased a lot in 2012 than the previous four years. On the other hand net interest margin of Mercantile bank Limited was lowest in 2012 than the other four years. Banks that heavily emphasize credit card loans have a higher net interest margin because they earn high interest income. So in year 2012 Prime Bank Limited might earn highest interest income and Mercantile Bank earn lowest interest income.

It tells us profit per tk. of assets. Any individual bank’s ROA depends on the bank’s policy decisions and as well as uncontrollable factors relating to the economy and government regulations.

Overall ROA of the banks fluctuated over the last five years. ROA of AB Bank Ltd fluctuated a lot than the other four Banks.   Due to high investment income in 2008, ROA of AB Bank Ltd of this year was...

Show More


MLA Citation

"Performance of Commercial Bank in Bangladesh". Anti Essays. 9 Dec. 2018


APA Citation

Performance of Commercial Bank in Bangladesh. Anti Essays. Retrieved December 9, 2018, from the World Wide Web: http://snehaedu.com/free-essays/Performance-Of-Commercial-Bank-In-Bangladesh-547551.html