In this paper it is attempted to investigate relationship of banks’ market concentration, banks’ market size, banks’ risk, with banks’ return on equity in Bangladeshi banks between 2000 and 2005. The data was obtained from annual reports of individual banks listed in Dhaka Stock Exchange (DSE) and from the Bangladesh Bank's published statistics book (Scheduled Banks Statistics). Data analysis was done using correlation matrix and stepwise regression. It was found that market concentration and bank's risk contribute very little to explain bank's return on equity. Instead bank's market size is the only major variable that explains bank's return on equity in the context of Bangladesh.
Commercial banks, market size, market concentration, bank risk, banks return on equity
