Risk Adjusted Performance Analysis of NBFIs in Dhaka Stock Exchange

Abstract

Non-Bank Financial Institutions (NBFIs) are emerging day by day as an integral part of the Bangladesh economy. For establishing a vibrant capital market along with the BFIs, existence and involvement of NBFIs have immense importance in a growing economy like Bangladesh. So the performance of NBFI is becoming a focal point for this developing economy. This paper aimed at measuring risk-adjusted performance of 19 NBFIs listed in Dhaka Stock Exchange (DSE) based on their month-end closing price. For this purpose various risk measuring tools have been used. Return of about 53% selected NBFIs found superior as compared to benchmark, DSI (DSE all Share Index). It is found that despite some constraints, the industry as a whole is performing reasonably better. NBFIs can be the key player of financial intermediation if they are provided with adequate assistance.

Keyword: NBFIs, Performance, Risk Adjusted, Stock Exchange