Abstract:
This research looks at how capital adequacy affects the financial performance of Bangladesh Krishi Bank. The main goal of the study is to look at how the bank's capital strength, as measured by the Capital Adequacy Ratio (CAR), affects its profitability and overall financial stability. Return on Assets (ROA) is the main way to measure a company's financial performance. Other indicators that help with this are the Non-Performing Loan (NPL) ratio, the Loan-Deposit Ratio (LDR), the Loan Growth Rate (LGR), and the Liquid Asset Ratio (LAR). The study uses secondary data from the audited annual reports of Bangladesh Krishi Bank, publications from Bangladesh Bank, and other relevant financial statements from 2010 to 2024. A quantitative research methodology is employed, and the data are examined utilizing descriptive statistics, correlation analysis, and multiple regression techniques via Stata and Microsoft Excel. The study's results should show the link between capital adequacy and bank performance. They should also show whether having more capital makes a bank more profitable and stable financially. The study also emphasizes the significance of sustaining an appropriate capital structure to ensure adherence to regulatory mandates and enhance the efficiency of risk management. The research offers valuable insights for policymakers, bank management, and regulatory authorities concerning the impact of capital adequacy on the financial performance of Bangladesh Krishi Bank.
