Impact of Intellectual Capital Components on Bank Performance: An Evidence from Bangladesh
[vc_row][vc_column width=”1/4″][vc_single_image image=”11608″ img_size=”684×1000″][/vc_column][vc_column width=”3/4″ css=”.vc_custom_1683003920554{margin-top: -50px !important;}”][thim-heading title=”Impact of Intellectual Capital Components on Bank Performance: An Evidence from Bangladesh” title_uppercase=”” size=”h3″ title_custom=”custom” font_weight=”” clone_title=”” line=””][vc_row_inner][vc_column_inner width=”1/2″][vc_column_text] Dr. Raad Mozib Lalon1, Shomaila Nargis Saika2
Published: 15 September, 2022[/vc_column_text][/vc_column_inner][vc_column_inner width=”1/2″][vc_column_text]Journal of Banking & Financial Services
Volume 14 Number 1 & 2 December 2022
DOI : https://doi.org/10.57143/JBFS130101
ISSN : 1990-5157[/vc_column_text][/vc_column_inner][/vc_row_inner][vc_column_text]
Abstract
This investigation aims to reveal how the profitability of local private commercial banks in Bangladesh is affected by their intellectual capital determinants. Secondary sources like annual reports of 10 private conventional commercial banks in Bangladesh were used to get data from 2008 to 2020. This paper uses econometric modeling techniques to examine the relationship between the profitability measures of NIM ratio, ROA, and ROE of the selected private commercial banks and a number of relevant components of intellectual capital of banks such as human capital efficiency, structural capital efficiency and Bank’s relative efficiency along with some bank-specific control variables including income diversification, bank size, bank age, insolvency risks, leverage ratio and market share.Dynamic panel data models were then built using one-step system GMMtechniques to account for endogeneity, unobserved heterogeneity, and profitability persistence of the data set across the chosen time period. This study hasfound that intellectual capital along with leverage ratio, revenue diversification, bank age, bankruptcy risks, and market share are statistically significant to demonstrate differences in NIM, ROA, and ROE measuring profitability of our sampled banks. The one-step system GMM approach has effectively adapted the dynamic effects of intellectual capital on bank profitability, taking into consideration all estimate conditions. A more accurate evaluation of intellectual capital’s effect on the banking industry’s profitability may be obtained in a future research encompassing all banks in Bangladesh.
Keywords: Intellectual capital, NIM, ROE, Dynamic Panel Investigation, GMM, [/vc_column_text][vc_column_text]Notes on Contributor
Associate Professor, Department of Banking and Insurance, University of Dhaka
Research Associate, Centennial Research Grant Project, University of Dhaka
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Mostak Ahmed
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The Department of Banking was established on 21 August 2004 under FBS and later in 2011, it was renamed as Department of Banking and Insurance. The vision of the Department is to be a recognized leader in developing talent in banking, insurance and other financial services, and to generate ideas to create opportunity by ensuring sustainable growth for them in Bangladesh and around the globe.