Bank-Specific and Macroeconomic Determinants of Profitability: Evidence from Private Commercial Banks in Bangladesh

Impact of Bank-Specific Determinants on Non-Performing Assets in Indian Public Sector Banks: An Empirical Analysis

Capital structure, bank size and profitability of commercial banks: Dynamic panel evidence from Bangladesh

This paper examines how capital structure and bank size impact the profitability of commercial banks in Bangladesh. A balanced panel of 12 commercial banks was studied, covering 2013 to 2022; there were a total of 120 bank-year observations. Return on Equity (ROE) and Net Interest Margin (NIM) were utilized as metrics of bank profitability. The Debt-to-Total-Assets Ratio (DTA), Debt-to-Equity Ratio (DTE), and Long-Term Debt-to-Capitalization Ratio (LTDCR) capture aspects of bank capital structures, while bank size was estimated using the natural log of total bank assets. Initially, fixed-effects and random-effects models, followed by a one-step System GMM, were utilized to address profitability persistence, potential endogeneity, and reverse causality. DTA was positively correlated with both ROE and NIM and was statistically significant at the 1% level in all of the dynamic models. Conversely, DTE had a negative correlation with both ROE and NIM and was also statistically significant at the 5% level in all of the dynamic models. LTDCR was not statistically significant. Bank size was directly correlated with bank profitability, supporting the economies-of-scale argument. These findings suggest that overall asset leverage may increase bank profitability; however, excessive debt compared with equity will decrease performance due to increased financial risk and funding costs. Additionally, this paper enhances the existing literature regarding commercial banking in South Asia by isolating leverage into its component parts and utilizing a dynamic panel approach to estimate those impacts.

Bank Specific and Macroeconomic Determinants of Commercial Bank Profitability in Kenya

This study examines the bank specific and macroeconomic determinants of commercial bank profitability in Kenya using a balanced panel of eleven leading banks observed annually over the ten year period from 2014 to 2023, yielding 110 bank year observations. Profitability is proxied by the return on assets, while the explanatory variables comprise bank size, capital adequacy, liquidity, asset quality measured by the non performing loans ratio, operational efficiency measured by the cost to income ratio, the loan to deposit ratio and two macroeconomic controls, namely real gross domestic product growth and inflation. Three competing estimators were applied: pooled ordinary least squares, a one way fixed effects model and a random effects model. Specification testing through the redundant fixed effects F test rejected the pooled specification in favour of a panel structure, while the Hausman test could not reject the orthogonality of the individual effects, indicating that the random effects estimator is both consistent and efficient for these data. The random effects results show that asset quality, operational efficiency and liquidity exert statistically significant negative effects on profitability, whereas bank size and the rate of economic growth exert significant positive effects. Capital adequacy, the loan to deposit ratio and inflation are not statistically significant once unobserved heterogeneity is accounted for. The non performing loans ratio emerges as the single most influential variable, underscoring the centrality of credit risk management to bank earnings in the Kenyan market. The findings carry direct implications for bank managers seeking to protect margins and for the regulator in calibrating prudential expectations.

Capital Structure, Profitability, and Firm Value in Indonesian State-Owned Banks: Panel-Data Evidence 2021–2025

Firm value is an important indicator of investor confidence, yet accounting performance and market valuation do not always move together in Indonesian state-owned banks. This study examines the associations of the Debt-to-Equity Ratio (DER) and Return on Assets (ROA) with Price-to-Book Value (PBV) in four state-owned banks listed on the Indonesia Stock Exchange during 2021–2025. A balanced panel of 40 bank-semester observations was estimated using a bank fixed-effects model. The reported conventional estimates indicate positive associations of DER and ROA with PBV. The adjusted R² is 0.8468, but it includes the bank fixed effects and should not be attributed to the two financial ratios alone. Because the panel contains only four banks and the available output does not provide panel-robust standard errors, the inferential results are interpreted cautiously as associational evidence. The findings underline the need to interpret bank liabilities as part of the intermediation model and to assess profitability together with bank-specific risk and capitalization indicators.

Influence Structure Capital and Risk Credit to Profitability in Banking Companies Listed on the Indonesia Stock Exchange (IDX) Period (2019-2023)

Determinants of sustainable growth rate of commercial banks in ethiopia: evidence from panel data analysis (2005–2023)

The sustainable growth rate (SGR) of commercial banks is a critical indicator of long-term financial viability, particularly in developing economies undergoing financial sector reforms. Yet, SGR determinants in Ethiopia’s rapidly evolving banking landscape remain strikingly underexplored. This study investigates bank-specific and macroeconomic drivers of SGR across 30 Ethiopian commercial banks (2005–2023), using an unbalanced panel of 455 observations. Fixed Effects (FE) estimation with cluster-robust standard errors—validated through F-test and Hausman specification tests, and confirmed by System GMM robustness checks—evaluates the impacts of asset quality, asset management efficiency, leverage, profitability, bank size, intellectual capital, capital adequacy, GDP growth, inflation, and structural shock variables (political instability, global financial crises) on SGR. Results demonstrate that asset management efficiency, profitability, bank size, capital adequacy, and GDP growth are robust positive drivers of SGR. Conversely, leverage, asset quality, inflation, and both crisis dummies exert a significant drag on sustainable growth rate. Notably, intellectual capital is the sole variable that proves insignificant. The study recommends that banks aggressively optimize asset management and control non-performing loans, regulators enforce prudent leverage ceilings, and policymakers preserve macroeconomic growth momentum while strictly controlling inflation. By incorporating political instability and financial crisis dummies from an under-researched frontier market, this study delivers timely, actionable intelligence as Ethiopia liberalizes its banking sector to foreign investors.