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Wydział Zarządzania Uniwersytetu Warszawskiego/Faculty of Management University of Warsaw
Bank liquidity; profitability; causality; public and private banks; Bangladesh
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Causal Analysis Between Liquidity And Profitability: Is There Any Difference Between Public And Private Commercial Banks In Bangladesh?, Qamarullah Bin Tariq Islam
Causal Analysis Between Liquidity And Profitability: Is There Any Difference Between Public And Private Commercial Banks In Bangladesh?, Qamarullah Bin Tariq Islam
Journal of Banking and Financial Economics
This paper analyzes the causal relationship between liquidity and profitability for public and private commercial banks in Bangladesh. The augmented Dickey-Fuller test of stationarity is carried out first. As they are found to be integrated of the same order, the Engle-Granger test of cointegration is applied. Finally, the Granger causality test is applied to check if there is any causal relationship between liquidity and profitability for public and private commercial banks in Bangladesh from 2001 to 2019. Another aim of the paper is to see if there is any difference in the causal relationship between these two bank typologies. The …