1 | P a g e1.EXECUTIVE SUMMARY This report is a research project on the banking environment of Bangladesh. The research has thoroughly been done on the banking industry of Bangladesh. The most important purpose of this research is to find out the relationship between five independent variables and one dependent variable from the banking industry. The selected five independent variables in this research have been taken are, bank size, liquidity risk, fees and commission, GDP, solvency risk. The one dependent variable is the profitability, which has been considered as ROA. The first foremost thing that has been included in this research is the problem statement of the research, which shows the problems and hindrance that are associated with the profitability of the banks in the banking sector. Most importantly, the correlation between the five selected independent variables and one dependent variable are shown in this research report. Most predominantly, the heart of the research is the methodology, which has been discussed in detailed form. In methodology the research design, objective, conceptual framework, hypothesis and data analysis have been taken into thorough consideration to develop this research report. To be more precise, and few gist of the research design says this report is a formal study. The predominant objective is mainly the determination of the profitability with the change in the selected five independent variables. Conceptual framework shows the correlation and relationship between the independent and the dependent variables. Hypothesis shows whether the data yields alternate and the null hypothesis. The sampling population, census, sampling frame, and sampling methods have thoroughly been taken into consideration and discussed as well. The data analysis has been done with the software called E views. Here, the correlation results are shown in the ratio form. There are three positive correlations and two negative correlation (weak relation). There are four negative coefficients and one positive. All P test shows does not reject null hypothesis. F test model shows nota good fit model. R square shows 11.1853%, which indicates dependent variable is explained by independent variable.
2 | P a g e2. INTRODUCTION This report is the result of a research work which was conducted on the commercial banking sector of Bangladesh. Mainly the research work was conducted on the “profitability” of the banks and how profitability may change due to other internal and external factor or how profitability can have significant relationship or less than significant relationship with other variables. The research work was done on the commercial banking sector of Bangladesh by collecting data of five commercial banks of the country; they are Bank Asia, Eastern Bank Limited (EBL), IFIC Bank, AB Bank and City Bank. All the collected data was for the years starting from 2012 till 2016.