http://ar.cou.ac.bd:8080/xmlui/handle/123456789/178 2026-05-28T18:56:40Z http://ar.cou.ac.bd:8080/xmlui/handle/123456789/252 Impact of Credit Risk Management on Profitability of Commercial Banks: An Estimation of Dynamic Panel Investigation from Bangladesh Eitu, Kanij Rukaiy a The profitability of commercial banks is influenced by a variety of internal and external factors. This study aims to identify and evaluate the bank-specific and macroeconomic determinants that affect the profitability of commercial banks in Bangladesh. The analysis is based on a dynamic panel data model using annual financial data from 10 commercial banks over a tenyear period, from 2014 to 2023. Return on Assets (ROA) and Return on Equity (ROE) are employed as the primary indicators of bank profitability. It providing a comprehensive measure of financial performance. The study considers a range of bank-specific factors, including the loan loss provision to total loan ratio (LLPTR), total loan to total asset ratio (TLTAR), total loan to total deposit ratio (TLTD), capital adequacy ratio (CAR), and non-performing loans to total loan ratio (NPLTL). In addition, key macroeconomic variables such as GDP growth rate (GDPGRR), inflation rate (INFR), exchange rate (ER), and real interest rate (RIR) are included to capture the broader economic environment. The empiricalfindings reveal that several bank-specific factors—specifically LLPTR, TLTAR, and CAR—exert significant influence on bank profitability, as do the macroeconomic variables INFR, ER, and RIR. These variables demonstrate a statistically significant relationship with both ROA and ROE, suggesting that both internal management decisions and external economic conditions play a critical role in shaping bank performance. The results indicate that prudent loan loss provisioning and effective capital management are critical for sustaining profitability, while efficient asset allocation further enhances performance. Conversely, the total loan to total deposit ratio (TLTD) and GDP growth rate (GDPGRR) do not show a statistically significant impact on profitability, indicating their limited predictive power in this context. For regulators, the evidence suggests that enhancing the supervisory framework around credit risk exposure and enforcing stricter capital adequacy standards could improve the sector's stability and profitability. The results of this study have practical implications for bank management, regulators, and policymakers, highlighting the need to strengthen capital adequacy, manage credit risk efficiently, and consider macroeconomic trends when formulating strategies to enhance the financial performance and stability of commercial banks in Bangladesh. 2025-05-26T00:00:00Z http://ar.cou.ac.bd:8080/xmlui/handle/123456789/184 Impact of Credit Risk Management on Bank’s Profitability: A Study on State Owned Commercial Bank Jabbar, Abdul This report "Impact of Credit Risk Management on Bank’s Profitability: A Study on State Owned Commercial Banks" examines the relationship between credit risk management and financial performance in state-owned banks of Bangladesh. The study evaluates key factors such as non-performing loans, loan loss provisions, capital adequacy, and loan-to-deposit ratios to assess their impact on profitability. The analysis reveals that poor credit risk management significantly affects the financial stability of banks, leading to decreased returns on assets. State-owned banks face challenges such as high non-performing loans, ineffective loan recovery mechanisms, and weak enforcement of credit policies, which adversely impact their financial health. The study also highlights the role of Bangladesh Bank’s regulations in shaping credit risk policies, although their implementation remains inconsistent. Findings suggest that while some banks adopt rigorous credit risk management frameworks, inefficiencies persist due to political influence, inadequate risk assessment, and poor monitoring. Regression analysis confirms a strong correlation between credit risk indicators and profitability, demonstrating that better risk management leads to improved financial performance. The study concludes that strengthening internal controls, enhancing credit evaluation processes, and reducing non-performing loans are essential for sustaining profitability in state-owned banks. Key recommendations include stricter supervision, improved risk assessment models, enhanced training for banking professionals, and the adoption of digital credit monitoring tools. These measures can help banks mitigate credit risks effectively, ensuring long-term financial stability and growth. Ultimately, the report underscores the need for a proactive and structured approach to credit risk management to enhance the profitability and sustainability of state owned commercial banks in Bangladesh. To conclude the report, it is mandatory to say that default clients have been a major problem for the banking as well as for the whole financial system. Bank can increase its profits by efficient management of credit risk. From the results of regression analysis where the interactions of independent variables in relation with depended variable are presented, it can be stated that the regression model is statistically significant and null hypothesis is rejected thereby alternative hypothesis is accepted that is there exist relationship between CRM and banks profitability. 2025-05-26T00:00:00Z