Business Administration in Finance

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Browsing Business Administration in Finance by Author "Abebaw Kassie (PhD)"

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    Bank Specific Determinants of Non-Perfoming Loans in the Case of Ethiopian Private Commercial Banks
    (A.A.U, 2021-06-13) Sawit Wassie; Abebaw Kassie (PhD)
    This study aims to find out the determinants of NPLs in Ethiopian private commercial banks. The variables were picked based on findings from the past written literatures. A quantitative research approach and explanatory research design were taken on in completing this research. Data collection method adopted for the study was document review. Secondary panel data were gathered from audited annual reports of the banks and from Ethiopian national bank then the desired ratios were calculated. Multiple linear regression equation was used to make an estimate of the model using Stata version 10 software. Data was collected from 16 private banks Tables, percentages; mean and standard deviation were established to survey the data. Furthermore, Random Effect Model was used to examine bank specific determinates of non-performing loan. loan growth rate, bank size, net interest margin ratio, return on asset and loan to deposit ratio has impact on the degree of NPLs. However, the outcomes did not suggest that equity to total asset ratio activities change the level of NPLs. The study suggests that private commercial banks should focus on many factors when providing loans so as to decrease the amount of NPLs. loan to deposit ratio, net interest margin, loan Growth rate, return on asset, bank Size were critical driver of NPLs, consequently centering and inciting the establishment close by these indicators could reduce the likelihood of NPL in Ethiopian private commercial banks. Further studies are recommended by including macroeconomic and other bank specific variables additionally by increasing the sampled periods. Key words: Loan to deposit ratio, Net interest margin, Loan growth rate, Return on asset, Bank size, Equity to asset ratio
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    Determinants of Non-interest Income in Selected Ethiopian Commercial Banks
    (A.A.U, 2024-06-11) Getawey Gashawbeza; Abebaw Kassie (PhD)
    This study aims to identify and analyse the determinants of non-interest income (NII) in Ethiopian commercial banks. Specifically, it examines the impact of bank-specific factors, macroeconomic variables, and technological advancements on non-interest income. An explanatory research design with a quantitative approach was employed, utilizing panel data from ten commercial banks in Ethiopia, spanning from 2010 to 2021. Secondary data was collected from internal and external sources, including the National Bank of Ethiopia, the Ministry of Finance, and annual financial reports of the sampled banks. The results indicate that certain bank-specific factors positively and significantly impact non-interest income. Conversely, macroeconomic variables such as GDP growth and inflation rate negatively impact non-interest income. This study provides a comprehensive analysis of the determinants of non-interest income for Ethiopian commercial banks. It highlights the importance of stable funding sources, foreign currency holdings, and macroeconomic conditions. Banks should focus on increasing core deposits, leveraging foreign currency services, and diversifying income streams to mitigate the impacts of economic cycles and inflation. Inflation-adjusted fee structures can help mitigate the erosion of non-interest income. Investments in digital banking services can further enhance non-interest income. Effective risk management remains crucial for maintaining overall financial stability.