CAUSALITY BETWEEN EXCHANGE RATE AND ECONOMIC GROWTH IN BANGLADESH

This paper attempts to examine the relationship between Exchange Rate (ER) and Economic Growth (EG) proxied by Real Gross Domestic Product (RGDP) in Bangladesh for a period of 41 years ranges from 1973 to 2013 by using time series econometric technique. The empirical results show that there is a significant positive correlation between ER and EG. The results also advocate the presence of long-run equilibrium relationship between ER and EG. This is evidenced from Granger’s Causality Test that there is a bi-directional causality runs through ER to EG and EG to ER

Relationship between Risk-taking, Capital Regulation and Bank Performance: Empirical Evidence from Bangladesh

This paper attempts to analyse the relationships between risk-taking, capital regulation and performance in banking sector of Bangladesh. We use Generalized Methods of Moments (GMM) in an unbalanced panel data using 38 commercial banks of Bangladesh for a period of 2007-2016. The empirical results show a significant negative relation between risk taking and capital regulation. Results also reveal that there is a significant positive relation between capital regulation and performance, and a significant negative relation between risk and performance. This study provides various suggestions about risk management and capital adequacy for the regulators, stakeholders and government