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Please use this identifier to cite or link to this item: http://hdl.handle.net/123456789/2027

Title: THE IMPACT OF FINANCIAL LIBERALIZATION ON THE OWNERSHIP, MARKET STRUCTURE AND PERFORMANCE OF THE ETHIOPIAN BANKING INDUSTRY
Authors: Tesfaye, Boru Lelissa
Advisors: Professor Dr. Chakradhar Dash
Keywords: Businness Administration
Copyright: Aug-2007
Date Added: 30-Apr-2012
Publisher: AAU
Abstract: Ensuring the efficiency and stability of the banking system can play a vital role for the successful implementation of the monetary and economic policies of a country. Yet, to achieve such objective it would be essential to place financial reform measures that enhance the contribution of the banking system towards economic development. An emblematic reform measure undertaken by the Ethiopian government commencing the year 1992 was “liberalizing “the financial sector. The aim of the study is to assess the impact of financial liberalization on the ownership structure, market concentration and profitability performance of the Ethiopian banking industry. The study found out that the reform has brought a lot of remarkable changes on the structure and performance of the banking sector as compared with the situations prevalent before the reform period. However, the reform has restricted the advantages that could be obtained from a diversified ownership structure via prohibiting operation of foreign banks and participation of the private sector to the ownership of government banks. Furthermore ,as tested by both two firm concentration ratio and HHI using total deposits, loans, capital and assets, the banking industry in Ethiopia can still be distinguished by its market concentration towards the big government owned commercial banks and by a market characterized by little and insufficient competition. The profitability of the industry has also shown a tremendous improvement after the reform measure has been taken. However, the existing government banks are enjoying having the higher share of profit from the industry and still the pattern of the industry profit is following the profitability structure of the giant bank, CBE. The study identified and recommended areas that need further liberalization measures so as to enhance the performance of the industry. Yet, it should be seen as a first step, not the last word in this direction.
URI: http://hdl.handle.net/123456789/2027
Appears in:Thesis - Business Adminstration

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