Abstract

This study examines the impact of privatization and financial liberalization on the banking sector and the contribution of private commercial banks in Bangladesh economy. We use most of the CAMELS measures to find out the performance of sample bank categories based on capital adequacy, asset quality, management efficiency, earnings and profitability, and liquidity. We examine 495 observations collected from 55 banks including 6 state-owned banks, 40 private commercial banks, and 9 foreign commercial banks during 2009-2017. This paper mostly agrees with the existing literature that privatization and financial liberalization has a significant positive influences on banking sectors performance. This paper also discloses that private commercial banks belong the sound management skills rather than other categories of the banks except for foreign commercial banks in Bangladesh. The findings of the research will help the government and the central bank to take a crucial financial decision to improve the financial performance of the banking sector in Bangladesh.