An Economic Analysis of Interest Rate Spread in the Commercial Bank of Bangladesh
Open Access
- 8 January 2022
- journal article
- Published by Universe Publishing Group - UniversePG in Canadian Journal of Business and Information Studies
Abstract
This study aims to present the discussion on the Interest Rate Spread (IRS) of the commercial banks in Bangladesh perspective. This paper also explains the interest rate spread in the commercial banks of Bangladesh using time series data of 60 banks covering the period of 1976 to 2020. The analysis shows that the higher the non-interest income as a ratio of total assets of a bank, the lower its spread. In this study, I tried to show the relationship among the lending interest rate with broad money, inflation, quasi money, official exchange rate, and personal remittance. Variables are using time series data. Here I used some proxy data of Bangladesh Bank based on the time series data from 1976-2020 periods from world development indicator and also collected data from various publications of Bangladesh Bank and other relative sources. In this paper, I used different statistical tools such as bar graph, pie chart, line bar, column, area, etc. The analyze the money supply and its effect on the interest rate spread in Bangladesh and analyze the official exchange rate and trend on interest rate spread. Here shows the efficiency of the commercial banking sector and hence the economic growth and development of Bangladesh.Keywords
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