The purpose of the paper is to explore how capital structure affects the profitability of Bangladeshi commercial banks. A balanced panel data set of ten listed commercial banks of Bangladesh has been selected over the period of 2011 to 2022. The analysis is performed using OLS regression model. The study found that debt to assets ratio and current liabilities to assets ratio have significant positive impact on ROE of commercial banks of Bangladesh. The study also found that debt to equity ratio is significantly and negatively correlated to the return on the assets of the commercial banks. Assets size and assets quality have significant negative influence on net interest margin of the commercial banks. The study also found that assets quality & assets size are significantly and negatively correlated to return on the equity & return on the assets of the commercial banks. Current liabilities to assets ratio has positive impact on return on equity of the banks. Capital adequacy ratio has positive impact on the profitability of the commercial banks of Bangladesh.
Akhter et al. (Wed,) studied this question.