The impact of ownership structure on bank credit risk: Evidence from Bangladesh
This study investigates the impact of ownership structure of Commercial Banks on bank credit risk in an emerging market like Bangladesh. Prais Winten regression model is applied to a sample of 32 commercial banks from the year of 2000 to 2014 with 390 observations. The result reveals that Nationa...
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Online Access: | http://www.ejbe.org/EJBE2017Vol10No19p019SARKER-NAHAR.pdf |
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doaj-c99e97bdadb44ce18f4690b8f4b5ac612020-11-25T01:17:49ZengAla-Too International UniversityEurasian Journal of Business and Economics 1694-59481694-59722017-05-011019193610.17015/ejbe.2017.019.02The impact of ownership structure on bank credit risk: Evidence from BangladeshNiluthpaul SARKER0 Shamsun NAHAR1Huazhong University of Science and TechnologyZhongnan University of Economics and LawThis study investigates the impact of ownership structure of Commercial Banks on bank credit risk in an emerging market like Bangladesh. Prais Winten regression model is applied to a sample of 32 commercial banks from the year of 2000 to 2014 with 390 observations. The result reveals that National Commercial Banks, depositors’ influence, shareholders’ influence, liquidity and profitability are negatively associated with credit risk whereas lag risk has a significant positive impact on credit risk. The effect of banks ownership structure on credit risk divulges a delicate governance of the banking sector. The study conveys a momentous implication of research findings in the national economy. It also found that national commercial banks have the tendency of violating the rules and absorbing heavy risk. It suggests that policy maker should rethink about the government ownership of banks. Therefore the denationalization or reducing government ownership structure is highly recommended.http://www.ejbe.org/EJBE2017Vol10No19p019SARKER-NAHAR.pdfQuantitative MethodsStatistical TestingPanel dataOwnershipBanks. |
collection |
DOAJ |
language |
English |
format |
Article |
sources |
DOAJ |
author |
Niluthpaul SARKER Shamsun NAHAR |
spellingShingle |
Niluthpaul SARKER Shamsun NAHAR The impact of ownership structure on bank credit risk: Evidence from Bangladesh Eurasian Journal of Business and Economics Quantitative Methods Statistical Testing Panel data Ownership Banks. |
author_facet |
Niluthpaul SARKER Shamsun NAHAR |
author_sort |
Niluthpaul SARKER |
title |
The impact of ownership structure on bank credit risk: Evidence from Bangladesh |
title_short |
The impact of ownership structure on bank credit risk: Evidence from Bangladesh |
title_full |
The impact of ownership structure on bank credit risk: Evidence from Bangladesh |
title_fullStr |
The impact of ownership structure on bank credit risk: Evidence from Bangladesh |
title_full_unstemmed |
The impact of ownership structure on bank credit risk: Evidence from Bangladesh |
title_sort |
impact of ownership structure on bank credit risk: evidence from bangladesh |
publisher |
Ala-Too International University |
series |
Eurasian Journal of Business and Economics |
issn |
1694-5948 1694-5972 |
publishDate |
2017-05-01 |
description |
This study investigates the impact of ownership structure of Commercial Banks on
bank credit risk in an emerging market like Bangladesh. Prais Winten regression
model is applied to a sample of 32 commercial banks from the year of 2000 to 2014
with 390 observations. The result reveals that National Commercial Banks,
depositors’ influence, shareholders’ influence, liquidity and profitability are
negatively associated with credit risk whereas lag risk has a significant positive
impact on credit risk. The effect of banks ownership structure on credit risk divulges
a delicate governance of the banking sector. The study conveys a momentous
implication of research findings in the national economy. It also found that national
commercial banks have the tendency of violating the rules and absorbing heavy
risk. It suggests that policy maker should rethink about the government ownership
of banks. Therefore the denationalization or reducing government ownership
structure is highly recommended. |
topic |
Quantitative Methods Statistical Testing Panel data Ownership Banks. |
url |
http://www.ejbe.org/EJBE2017Vol10No19p019SARKER-NAHAR.pdf |
work_keys_str_mv |
AT niluthpaulsarker theimpactofownershipstructureonbankcreditriskevidencefrombangladesh AT shamsunnahar theimpactofownershipstructureonbankcreditriskevidencefrombangladesh AT niluthpaulsarker impactofownershipstructureonbankcreditriskevidencefrombangladesh AT shamsunnahar impactofownershipstructureonbankcreditriskevidencefrombangladesh |
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1725145669082021888 |