Econometric Study of Loan Classification of Commercial Banks in Bangladesh

Abstract

Abstract:This research intends to exemplify the loan classification of commercial banks in Bangladesh. The study area is selected on commercial banks of Bangladesh. After liberation, our banking business had been performing well but very recent time most of the banks face a problem of loan classification. So they loss some profit and fall under trouble for the loan run. We know that there are 56 commercial banks in Bangladesh. Deposit collection and lending are the main function of these banks. The study is conducted on only five commercial banks of Bangladesh. Last 10 years data of the selected banks are considered to accomplish the study. This research focuses on the major challenges of good loan that obstruct smooth development of Bangladesh. This study conveys the message that if the loan classification is reduced and good loan culture is created, the banking sector will flourish very fast way.