Associate Professor, Department of Accounting & Information Systems, Islamic University, Kushtia, Bangladesh
Online published on 11 September, 2015.
The commercial banks like NCBs, PCBs, SCBs & FCBs have been playing a commendable role in achieving the economic growth of Bangladesh. Default culture in many of the banks is a chronic problem. The object of the study is to focus on the performance indicators of banking activities of Bangladesh through highlighting their profitability & productivity during 1996–2005. Two hypotheses based on the said objectives have been tested. The findings of the study reveal wide fluctuation in interest rates, recovery rates, stuck-up advances, cost of fund, profitability, productivity, earning rates etc. Reduction in stuck-up advances, extensive use of working fund, reducing costs, covering the cost of fund, raising earnings, productivity, implementation of recently developed FSRP of the Ministry of Finance, preventing money laundering activity etc. are demanded to maximize the role of commercial banks in economic advancement of Bangladesh. With the recent market economy concept, introduction of modern technology of banking sector, there is severe competition in the world-banking environment. This also requires prudent use of bank fund through developing strategic plans & policies based on modern information technology & global knowledge.
