Performance Evaluation of the Banking Industry in Bangladesh: A Comparative Analysis

Abstract

The main focus of this research is to show comparison about the performance of Banks operating in Bangladesh.For this analysis we have used some most commonly used measures such as general business measures, profitability measures, management soundness measures and social profitability measures.Though, both conventional & Islamic banking have enormous contribution to the economy they have two major functional differences.First one is that where as the conventional banks follow borrowing and lending mechanism, the Islamic banks follow trading and investment mechanism and neither accept nor pays interest in any of its activities.And the other is conventional bank provide & receive interest for deposit & advance but Islamic banks are concerned with profit in case of both deposit and investment.For performance comparison both financial profitability & social profitability aspect of performance have been taken into consideration.The study shows that in spite of a few exceptions in general Islamic banks' overall performance was better than the conventional banks.At the end, some lines of actions were mentioned to make necessary improvements.