Impact of macroeconomic factors on bank performance in Bangladesh

Abstract The present study investigates the impact of macroeconomic factors on the performance of banks in Bangladesh. The study analyzed 35 commercial banks consisting of both Islamic and conventional banks in Bangladesh from 2015 to 2020. The data was analyzed using the random effect regression model. Return on assets (ROA) is the dependent variable while macroeconomic variables such as GDP growth (GDPG), inflation (INF), and unemployment (UNEP) are the independent variables. The regression results showed that GDP growth and unemployment rate have a significant impact on the return on assets for banks in Bangladesh banks. There was no significant impact between inflation and return on assets.JEL: D00, D02, E02, F62