School Banking, Its Trend and Nexus with Profitability in Bangladesh

Abstract

This work attempts to observe the current state of school banking, its trend and its association with profitability. Data from secondary sources have been collected for the period of 10-years from 2011 to 2020 to achieve the goals. The data have been collected, tabulated, categorized, coordinated and performed the relevant calculation of to fulfill the purpose. With the assistance of MS Office Excel and IBM SPSS-21, tabular presentation, graphical analysis, percentage, correlation, and simple linear regressions have been used to analyze data. Independent variables are known to be the volume of deposits in the school bank account. Return on assets (ROA) and return on equity (ROE) are chosen as profitability yardstick and used as a dependent variable for regression analysis. The results of the research have shown an increasing trend of account opening during the time and collection of deposits from these accounts. Between 2011 to 2020, the amount of school bank deposits compared to banks' overall deposits also increased from 0.01 percent to 0.16 percent. The assessment of the correlation showed that there was a strong positive association between the number of accounts opened and the sum deposits in those accounts. It also found that there was a relatively high negative relationship between the volume of deposits in school bank accounts and the return on equity and the return on assets. The output of the regression also clearly shows that school banking (amount of deposits) has a negative relationship with return on equity and return on total asset. The analysis is carried out on the basis of secondary data. However it is not possible to judge validity and reliability.