Journal of Ekonomi, Journal Year: 2024, Volume and Issue: unknown, P. 28 - 39
Published: Nov. 9, 2024
Loan growth is a critical driver for economic development, and comprehending the determinants affecting lending in state-owned banks vital enhancing financial sector stability performance. This paper examines factors that affect loan Bangladesh. We collected data over 11-year period from 2012 to 2022. applied ordinary least square method primarily followed by fixed effect estimation. To check validity of regression models study, we have considered several diagnostic tests. Our findings indicate influenced industry-dependent variables i.e. size, liquidity, efficiency, non-performing loans, etc. The influence bank income, ratio, cost-to-income ratio main emphasis this study's investigation into influencing lending. According statistics, there significant positive correlation between size Bank liquidity show strong negative correlation. study also found higher associated with loans significantly. efficiency shows substantial impact on improve performance stability, policymakers management may benefit greatly these results. Policymakers need integrate various macroeconomic qualitative elements regulatory frameworks bolster while facilitating sustainable expansion. can enhance decreasing strengthening credit risk management, utilizing strategic expansions increase capacity.
Language: Английский