The present article seeks to examine the determinants of the bank profitability in a developing country like Bangladesh and to compare the performance of Islamic and conventional banks during the period 2008 -2014. Specifically working within the Bangladeshi financial sector, the analysis is confined to the domestic commercial banks operating in the Bangladeshi financial sector during the period 2008-2014. In order to achieve the study objectives and to answer some questions, the ratio analysis and CAMEL has been used. The study found that the higher capital ratio, Tier-1, and growth in total deposits for Islamic banks than conventional banks. On the other hand, Islamic banks are not able to good perform with ROA, ROE and cost-to-income ratio while conventional banks showed satisfactory performance in utilizing funds which was proved in this analysis as high ROA, ROE and cost-to-income ratio. This study shows that management efficiency regarding operating expenses positively and significantly affects the banks' profitability.
This paper inspects the intercommunication between inflation and economic growth for ten (10) selected countries using annual data series collected from World Bank Development Indicator. GDP and CPI data are used in this regard. Series are found to be stationary at level 1. Residual and Johansen Cointegration tests confirm the long-run relationship between variables. Short-run dynamics are checked by the Error Correction Model. Desired negative signs are contained in the ECT for all sequences, and absolute values are <1. Except for the UK data, the inflation imbalance will be adjusted by economic growth for all countries and vice versa. The ECT of India is observed to be high −0,736 and −0862, suggesting that 73% and 86% of imbalances would converge in long-term equilibrium owing to shifts in inflation and economic growth, respectively. The sensitivity of inflation to growth and vice versa varies from country to country. The study also shows that the association between inflation and economic growth is favorable for some countries and the opposite for other countries. Such outcomes lead policymakers to enact policies to regulate the economy in the context of macroeconomic management.
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