Template-Type: ReDIF-Article 1.0
Author-Name: Bhowmik, Probir Kumar
Author-Name-First: Probir Kumar
Author-Name-Last: Bhowmik
Author-Email: pkbhowmik@bu.ac.bd
Author-Workplace-Name: Department of Accounting and Information Systems; University of Barishal, Barishal, Bangladesh,
Author-Name: Baser, Abdul Alim
Author-Name-First: Abdul Alim
Author-Name-Last: Baser
Author-Email: alim.baser@gmail.com
Author-Workplace-Name: Department of Accounting and Information Systems; University of Barishal, Barishal, Bangladesh,
Author-Name: Hossain, Shahadat
Author-Name-First: Shahadat
Author-Name-Last: Hossain
Author-Email: aabaser@bu.ac.bd
Author-Workplace-Name: Department of Accounting and Information Systems; University of Barishal; Barishal-8254; Bangladesh
Author-Name: Hussain, Shahadat
Author-Name-First: Shahadat
Author-Name-Last: Hussain
Author-Email: shahadathussain09@gmail.com
Author-Workplace-Name: Department of Finance and Banking; University of Barishal, Barishal, Bangladesh
Title: Bank Efficiency: What Matters in an Emerging Economy
Abstract: This study investigates the determinants of bank efficiency in the banking sector, focusing on several key variables from 2011 to 2022. Initially, we applied Ordinary Least Squares (OLS) followed by feasible generalized least squares (FGLS) regression to analyze the panel dataset. The results show that the net operating profit after tax has a significant impact on CIR, suggesting that higher profitability improves efficiency. Conversely, the total assets exhibit a significant positive relationship with CIR, indicating that larger banks tend to have higher cost inefficiencies. The loan loss provisions also show a significant adverse effect, reflecting that higher provisions are associated with lower efficiency. However, the Operating Expenses variable does not significantly affect CIR. Additionally, liquidity demonstrates a significant negative impact, suggesting that higher liquidity reduces inefficiencies. These findings contribute to an understanding of the factors influencing bank efficiency and offer insights for policy and management strategies to enhance the performance of the banking sector.
Keywords: Bank Efficiency, FGLS, SIZE, Liquidity, NPL
Journal: International Journal of Economics and Financial Issues
Pages: 88-96
Volume: 16
Issue: 1
Year: 2026
Month: 01
DOI: 10.32479/ijefi.21184
File-URL: https://econjournals.com/index.php/ijefi/article/download/21184/9848
File-Format: application/pdf
Handle: RePEc:eco:journ1:v:16:y:2026:i:1:id:21184