| Abstract | Banking sector plays an important role in the economic development of a country specially for Bangladesh, a sound and efficient banking system is one of the most important precondition to achieve economic development. At present, a total of 47 banks(4 SCBs, 4 DFIs, 30 PCBs and 9 FCBs) having 7246 branches are operating in Bangladesh with Tk. 4411.98billion total assets and Tk. 3329.08 billion deposits. The performance of 4types of banks needs to be compared with each other as well as the overall performance of banking sector needs to be compared with other countries. Quantitative comparison can be done on the basis of CAMELS ratio.
CAMELS ratios mainly indicate the adequacy of the risk based capital, non-performing loan position, liquidity gap analysis, liquidity ratio, inter-bank dependency, return on assets (ROA), return on equity (ROE), net interest margin (NIM), credit growth, credit concentration, single borrower exposure, foreign exchange exposure, market risk and management questionnaire, etc. The study compares the 4 types of bank's time series performance on the basis of selected CAMELS ratios.
The study also attempts to find out correlation of different ratios and also attempted to find out the relationship between different ratios and GDP contribution by financial intermediaries. The results found is very interesting which varies significantly to each other. |