The Impact of Investment Decision Quality of Islamic Banks in Bangladesh: A Critical Review

Abstract

The study investigates investment decision quality of Islamic banks in Bangladesh. Five financial ratios are selected for measuring investment performances of selected banks. Deposits and credits do not always ensure better profitability performance and operational efficiency and asset utilization. CAR and Tire_1 ratio do not differ significantly at Islamic banks in last five years. The researchers have found that there is a satisfactory improvement in bank’s credit quality in last five years despite of certain fluctuations. It is also worth mentioned that investment quality of Islamic banks is much better than that of conventional banks in Bangladesh.

Key words:  Investment decision, LSRNPL , LSRTL, Bangladesh.