Use this URL to cite or link to this record in EThOS: http://ethos.bl.uk/OrderDetails.do?uin=uk.bl.ethos.697784
Title: The performance of Bangladeshi commercial banks : the role of corporate governance
Author: Mahbub, Tasmina
ISNI:       0000 0004 5994 011X
Awarding Body: University of Manchester
Current Institution: University of Manchester
Date of Award: 2016
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Abstract:
Academic studies of Bangladeshi Private Commercial Banks (PCBs) have identified issues of Corporate Governance relating to ‘crony capitalism’ and political influence. The thesis combines quantitative and qualitative methods. The research employs conventional econometric panel estimation and a novel method of estimating efficiency using a non-parametric bootstrapping technology. The results reveal significant performance differences. To understand the causes underlying the differences in revenue efficiency and profitability, multiple lenses from theories of Corporate Governance are adopted to design semi-structured interviews. Twenty in-depth interviews from a sample of banks, both managers and board members and industry stakeholders are supplemented with documentary analysis. The quantitative findings reveal a performance gap between 1st Generation PCBs and 2nd and 3rd Generation PCBs in terms of Efficiency and Profitability. 1st Gen PCBs perform worst whereas there is no statistical difference between Gen 2 and Gen 3 PCBs. Moreover, there is no sign of catch-up or improvement for the 1st Generation PCBs. The research demonstrates that an increasing amount of 1st Generation banks’ Non Performing Loans is the main reason for this performance gap. The interview data relate the performance gaps to inadequate Corporate Governance. The research identifies family dominated boards that have encouraged crony capitalism and featherbedding of employees resulting in excessive Non Performing Loans and higher overhead costs. Also, these 1st Generation banks are excessively large in terms of employees, rural branches and remittance earnings leading to a culture of invulnerability to takeover.
Supervisor: Barker, Katharine ; Nedeva, Maria Sponsor: Not available
Qualification Name: Thesis (Ph.D.) Qualification Level: Doctoral
EThOS ID: uk.bl.ethos.697784  DOI: Not available
Keywords: Efficiency ; Profitability ; Corporate Governance ; Private Commercial Banks of Bangladesh
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