| dc.description.abstract | This study aims to examine the influence of loan
default over the sustainability of financial health of selected
private commercial banks listed on Dhaka Stock Exchange
(DSE) in Bangladesh. The banking sector of the country faces
significant challenges in terms of loan defaults. The study
applies panel data analysis to investigate how non-performing
loan ratio (NPLR), capital adequacy ratio (CAR), provision
maintenance ratio (PMR), credit deposit ratio (CDR), and
cost-to-income ratio (CIR) influence the sustainability of bank
performance, as measured by a profitability indicator- return
on assets (ROA). The study utilizes secondary data of 19
private commercial banks over a 16-year period (2008-2023),
representing strongly balanced panel data. Hausman
specification test recommends fixed effect regression model
which reveals that NPLR has a significant negative influence
over ROA, whereas CDR shows a significant positive impact.
This study provides valuable insights for bank management in
Bangladesh to better manage non-performing loans and
optimize credit strategies to maintain profitability.
Keywords - Credit deposit ratio, fixed effect regression, nonperforming
loan ratio, profitability | en_US |
