FACTORS AFFECTING THE FINANCIAL WELLBEING OF BANK EMPLOYEES IN BANGLADESH– MODERATING ROLE OF MACRO-ECONOMIC STABILITY

Finance

This paper studies the impact of socio-economic and behavioural factors on the financial well-being of bank employees in Bangladesh, with a focus on the moderating role of macro-economic stability. As employees in the banking sector face unique financial challenges, including inadequate compensation, financial stress, and low financial literacy, this study examines how compensation packages, spending behavior, financial literacy, and future planning influence their financial well-being. The analysis also explores the impact of macroeconomic factors, including inflation and economic instability, on these connections. The analysis involved a survey of 260 bank employees, employing Structural Equation Modelling (SEM) through SmartPLS 4. The findings indicate that compensation structures, knowledge of financial concepts, and strategic future planning contribute positively to financial well-being, while fluctuations in the macroeconomic environment exacerbate financial stress. This study offers practical recommendations for banking institutions and governments to improve employee financial well-being through targeted financial wellness programs, increased compensation, and effective stress management strategies. This highlights the importance of financial literacy and economic stability in shaping the financial well-being of bank personnel in developing countries, laying the groundwork for future studies in this area.

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