Corporate Governance Practices and Non-performing Loans in Banking Sector of Bangladesh: A comparative Study

M. Kamruzzaman, Anowar Ullah
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Abstract

Purpose: This study attempts to identify & significantly examine how corporate governance practices interact with non-performing loans in the banking sector of Bangladesh. Corporate governance (CG) is one of the significant factors that has gained considerable attention due to several rising scams in the banking sector. Recent global financial crisis as well as collapse of few local and global splendens entities like Bismillah Group, Hallmark, MCI Inc., and WorldCom etc. have strongly affected the banking sector globally that forced to rethink the overall banking structure. Methodology: The present study was descriptive in nature for which convenient sampling method was used to select the sample banks. Required data were collected from diversified data sources and tested with Microsoft Office (MS Excel). Findings: The study found that different persons and sectors like debased and dishonest bank officials of BB, top management and powerful political figures commonly affect the lending decisions. CG practices ought to be fortified as well as careful and tactful lending decisions must be ensured to stop credits turn bad. Practical Implications: Sometime, banks don't adhere to the principles and guidelines formulated by BB appropriately which are the constraints to operate business soundly. Each of the identified factors here ought to be analyzed cautiously so as to improve CG practices among the banks for fortifying the banking sector. Originality: Researchers tried to track down the relationship between CG practices and their effect on NPLs in BD perspective considering the financial data of respective entities. The present paper simply added some new nfluencing factors to the several prior works in this field which made it unique. Research Limitations: Researchers considered a limited part of the entire banking sector (only 12 of 61banks) which has shown a partial status of this sector. It would be possible to take private, specialized, Islamic and state-owned banks‘ data and make a comparison to show the desired real picture of CG practices and non-performing loans of the whole banking sector.
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公司治理实践与孟加拉银行业不良贷款:比较研究
目的:本研究试图确定并显著检查公司治理实践如何与孟加拉国银行业的不良贷款相互作用。公司治理(CG)是一个重要的因素,已经获得了相当大的关注,由于几个上升的诈骗在银行业。最近的全球金融危机以及像Bismillah Group, Hallmark, MCI Inc.和WorldCom等少数本地和全球卓越实体的崩溃强烈影响了全球银行业,迫使人们重新思考整个银行业结构。方法:本研究为描述性研究,采用方便抽样方法选择样本库。从各种数据源收集所需数据,并使用Microsoft Office (MS Excel)进行测试。研究发现,不同的人和行业,如贬损和不诚实的银行官员,高层管理人员和强大的政治人物,通常会影响贷款决策。应该加强CG实践,同时必须确保谨慎和机智的贷款决策,以防止信贷变成坏账。实际影响:有时,银行没有适当遵守BB制定的原则和指导方针,这是制约业务健康经营的因素。这里确定的每一个因素都应该仔细分析,以便改善银行之间的CG实践,以加强银行业。原创性:研究人员试图从商业发展的角度,结合各自实体的财务数据,追踪CG实践及其对不良贷款的影响之间的关系。本文只是在前人研究的基础上增加了一些新的影响因素,使其具有独到之处。研究局限:研究人员考虑了整个银行业的有限部分(61家银行中只有12家),这表明了该行业的部分地位。可以将私人银行、专业银行、伊斯兰银行和国有银行的数据进行比较,以显示整个银行业的CG实践和不良贷款的理想真实情况。
本文章由计算机程序翻译,如有差异,请以英文原文为准。
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CiteScore
6.30
自引率
8.30%
发文量
18
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