IDEAS home Printed from https://ideas.repec.org/a/ids/ijfsmg/v7y2014i1p73-94.html
   My bibliography  Save this article

The impact of competition on bank performance in Bangladesh: an empirical study

Author

Listed:
  • S. M. Sohrab Uddin
  • Yasushi Suzuki

Abstract

This paper attempts to assess bank performance, competition and their relationship empirically by using banking sector data (1983-2011) and individual bank data (2001-2011) from Bangladesh. Return on assets and data envelopment analysis grounded bank efficiency are used as bank performance measures, whereas eight structural measures are employed for assessing competition followed by the adoption of regression analysis for identifying its impact. The findings report an improvement of bank performance with a few fluctuations in between the sample periods under study. On the other hand, the level of competition has been consistently increasing in the banking sector, as pointed out by all structural measures. The regression result shows evidence of a negative relationship between competition and bank performance. It is required to revisit the structural changes of the banking sector. In particular, the regulatory authorities need to ensure necessary incentives for banks, particularly for private banks, to improve their performance in terms of profitability and efficiency.

Suggested Citation

  • S. M. Sohrab Uddin & Yasushi Suzuki, 2014. "The impact of competition on bank performance in Bangladesh: an empirical study," International Journal of Financial Services Management, Inderscience Enterprises Ltd, vol. 7(1), pages 73-94.
    • Handle: RePEc:ids:ijfsmg:v:7:y:2014:i:1:p:73-94
    as

    Download full text from publisher

    File URL: http://www.inderscience.com/link.php?id=62293
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Mohammed, Nafisah & Muhammad, Junaina & ismail, abdul & Jauhari, Azmafazilah Binti, 2019. "Does Efficiency Matter for Competition? A Case of Dual Banking Industry," Jurnal Ekonomi Malaysia, Faculty of Economics and Business, Universiti Kebangsaan Malaysia, vol. 53(3), pages 163-177.
    2. Anwar Hossain Repon & K.M Zahidul Islam, 2016. "Competition and Concentration in Bangladeshi Banking Sector: An Application of Panzar-Rosse Model," International Journal of Finance & Banking Studies, Center for the Strategic Studies in Business and Finance, vol. 5(1), pages 14-29, January.
    3. Mohammed, Nafisah & ismail, abdul & Muhammad, Junaina, 2016. "Concentration and Competition in Dual Banking Industry: A Structural Approach," Jurnal Ekonomi Malaysia, Faculty of Economics and Business, Universiti Kebangsaan Malaysia, vol. 50(2), pages 49-70.
    4. Ismail Elnihewi & Rapiah Mohamed, 2015. "Effect of Organisational Structure and Competition on Organisational Performance in Libyan Commercial Banks," Information Management and Business Review, AMH International, vol. 7(6), pages 50-55.
    5. Nidhal Ziadi Ellouz, 2024. "Does Competition Affect Bank Efficiency in MENA Countries? A Double Bootstrapping-DEA Approach," International Journal of Business and Management, Canadian Center of Science and Education, vol. 19(1), pages 1-32, February.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ids:ijfsmg:v:7:y:2014:i:1:p:73-94. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sarah Parker (email available below). General contact details of provider: http://www.inderscience.com/browse/index.php?journalID=76 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.