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
