Abstract:
The Aim of this study is to determine the effect of bank characteristic internal determinants
OU the licensed commercial Banks in Sri Lanka. Internal determinants are like SIZE,
DEPOSITS, LOAN and CAPITAL. Secondary data was collected from 10 licensed
Commercial Banks in Sri Lanka in 2007 to 2011.
The Pearson's Correlation technique was applied to calculate on these variables and used to
run the regression model. The estimation result shows that bank size, capital, loan and
deposits are significantly and positively influence the bank profitability. For future studies, it
is recommended that more sample size and determinant factors can be included in
determining the effect on bank profitability. Bank profitability is measured by Return on
Assets (ROA) and Return of Equity (ROE) as a function of banks specific determinants
