Abstract:
The main purpose of this study examines the bank specific factors which are
determined the financial performance of listed banks in Sri Lanka. Bank size (BS),
Capital ratio (CAR), Liquidity (LIA), Deposits to assets (DEA), Operating expense
to assets (OPA), and Loan to assets (LOA) as independent variables and financial
performance as the dependent variable. This research return on assets (ROA) and
return on equity (ROE) used measure the financial performance. The study conducted
with panel data and utilized the sample frame interim financial reports of listed banks
in Sri Lanka. Multiple regression model used analyze the data including 220
observations of 11 listed bank in Sri Lanka over the period 2013-2017.Regression
model were analyzed by using E- Views software package.
The result reveal that bank size, loan to assets and deposits to assets have significant
positive relationship with both financial performance measures and liquidity has
significant negative relationship with return on equity (ROE). In view of these
findings, banks financial performance is determine by the bank specific factors
therefore bank management have more significant influence on determine the
financial performance of banks listed in Sri Lanka. The result of the study are value
to both academic and policy makers
