Relationship between Risk-taking, Capital Regulation and Bank Performance: Empirical Evidence from Bangladesh

Authors

  • Morshedur M. RAHMAN University of Chittagong
  • Ali Arshad CHOWDHURY University of Chittagong
  • Mouri DEY University of Chittagong

Keywords:

capital regulation; risk-taking; commercial banks, panel data analysis; performance.

Abstract

This paper attempts to analyse the relationships between risk-taking, capital regulation and performance in banking sector of Bangladesh. We use Generalized Methods of Moments (GMM) in an unbalanced panel data using 38 commercial banks of Bangladesh for a period of 2007-2016. The empirical results show a significant negative relation between risk taking and capital regulation. Results also reveal that there is a significant positive relation between capital regulation and performance, and a significant negative relation between risk and performance. This study provides various suggestions about risk management and capital adequacy for the regulators, stakeholders and government.

Published

30-11-2018

How to Cite

RAHMAN, M. M., CHOWDHURY, A. A., & DEY, M. (2018). Relationship between Risk-taking, Capital Regulation and Bank Performance: Empirical Evidence from Bangladesh. Eurasian Journal of Business and Economics, 11(22), 29-57. Retrieved from https://ejbe.org/index.php/EJBE/article/view/100

Issue

Section

Articles