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Determinants of Private commercial banks lending in Ethiopia

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dc.contributor.advisor Sewale, Abate (Phd)
dc.contributor.author Taye, Haile
dc.date.accessioned 2020-09-16T08:59:28Z
dc.date.available 2020-09-16T08:59:28Z
dc.date.issued 2020-06
dc.identifier.uri http://etd.aau.edu.et/handle/123456789/22338
dc.description A Thesis Submitted To The School Of Graduate Studies Of Addis Ababa University In Partial Fulfillment Of The Requirements For The Degree Of Master Of Science In Accounting And Finance en_US
dc.description.abstract The objective of the study was to investigate the determinant factors of private commercial banks lending in Ethiopia. Balanced panel data was collected from audited annual financial statements of private commercial banks, National Bank of Ethiopia (NBE) and Ministry of Finance (MoF) to analyze the bank-specific determinants as well as the macroeconomic determinants of private commercial banks lending. The collected balanced panel data was analyzed with descriptive statistics, and multiple linear regression analysis. Random effect panel regression model was used for the data of ten private commercial banks in Ethiopia for the sample covered the period from 2009 to 2018. Ten explanatory variables that affect banks lending were selected and analyzed with STATA 11 econometrics software package. The results of panel data regression analysis showed that Capital adequacy ratio (CAR), Volume of deposit (VD), Return on Asset(ROA) and Lending interest rate(LIR) had positive and statistically significant effect on bank’s lending .Credit risk(CR), Cash reserve requirement (CRr) and Liquidity ratio(LQr) had negative and statistically significant effect on bank’s lending. Management quality (MQ), Gross Domestic Product (GDP), and Inflation rate (INFr) had negative correlation but statistically insignificant with commercial banks lending. The study suggests that Ethiopian private commercial banks should/need to work more to improve their volume of deposit, capitalization, reduce their credit risks and consider macroeconomic environment when extend loans. en_US
dc.language.iso en en_US
dc.publisher A.A.U en_US
dc.subject determinants en_US
dc.subject lending en_US
dc.subject loan and advances en_US
dc.subject private commercial banks en_US
dc.title Determinants of Private commercial banks lending in Ethiopia en_US
dc.type Thesis en_US

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