Do Internal Factors Really Affect Bank Performance?Evidence And Comparison On Sound And Failed Banks Of U.S.

The current study has analyzed key internal factors of sound banks and failed banks in the context of the United States.This is very important to elicit the facts about both the sound banks and failed banks so that any kind of management risk can be restricted with efficiency.In the recent context data analysis has been made to reveal the statistics behind both down market and upmarket conditions in bank sectors.A compact and composed literature review section has also been done by the researcher.This particular section has contained various relevant theories that can explain key factors of U.S banks success and failure.Literature review section has also included several banking and economic terms that can explain the net asset as well as the profit margin of a bank.During this study,the focus has been given on internal factors of bank profitability as it has allowed the researcher to make a stable research.With the help of this,the conclusion has been easily drawn from the hypotheses and objectives as prepared.Linear regression model has been focused on this study and for testing the validity of this model;the researcher has used multicollinearity,heteroscedasticity as well as descriptive analysis.Furthermore,in order to conduct these tests,a software platform E-views has been used.By comparing the sound and failed U.S banks,it is found that:bank size is not a fact for the bank profitability,bank with well capital also can be failed,U.S banks:availability of using deposit fund is not strong which lead them less profitable,Credit risk management of the U.S banks are not sufficient and they are over expenses for their staffs and causes less profitable means bankrupt.