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Analysis of Credit Risk, Efficiency, Liquidity, and Profitability of Selected Non-Bank Financial Institution: An Empirical Study

Author

Listed:
  • Sabrina Akhter

    (Senior Lecturer, Department of Business Administration, Daffodil International University, Dhaka.)

  • Jewel Kumar Roy

    (Lecturer, Department of Finance and Banking, Faculty of Business Administration, Jatiya Kabi Kazi Nazrul Islam University (JKKNIU), Trishal, Mymensingh)

Abstract

Financial Institutes (FIs) are the lifeblood of the financial system of any country that plays an intermediary between the surplus and deficit unit of any society. So the efficiency and performance of a financial institution is the indication of the sound financial system. Also the performance of any FI depends on a number of internal and external factors. In this study, the authors are trying to analyze the factors such as credit risk, efficiency, liquidity, and profitability; which affect the performance of non-bank financial institutions of Bangladesh. The methods used are descriptive with secondary data from financial statements of Non-Bank Financial Institutions from 2010 to 2015. Linear regressions, ANOVA, hypothesis testing while using T—test to examine the effect of partial variables and F—test to examine the effect of variables simultaneously with a significance level of 5 %. Based on the results it is concluded that partial NPM and ROA have positive and significant effects on LDR. NPL has a negative effect of the loan to deposit ratio. Simultaneously NIM, NPLs, and ROA significantly influence the level of influence of LDR while the remaining thought to be influenced by other variables not examined in this study. Classification JEL: C25, C35, G21

Suggested Citation

  • Sabrina Akhter & Jewel Kumar Roy, 2017. "Analysis of Credit Risk, Efficiency, Liquidity, and Profitability of Selected Non-Bank Financial Institution: An Empirical Study," Journal of Business, LAR Center Press, vol. 2(2), pages 16-23, March.
    • Handle: RePEc:lrc:larjob:v:2:y:2017:i:2:p:
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    Citations

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    Cited by:

    1. Yulia S. Evlakhova & Nataliya A. Amosova, 2022. "Nonbank Financial Intermediation in Times of Crisis: Identifying Leadership in the G20 Countries," Journal of Applied Economic Research, Graduate School of Economics and Management, Ural Federal University, vol. 21(3), pages 426-453.

    More about this item

    Keywords

    Loan to Deposit Ratio; Net Interest Margin;

    JEL classification:

    • C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions; Probabilities
    • C35 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages

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