Accounting and Auditing

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Browsing Accounting and Auditing by Author "-, Ulagathan (Dr)"

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    Regulation and Supervision of Nationl Bank of Ethiopia and its Impact on the Activities of Ethiopian Private Banking Industry
    (A.A.U, 2012-04) Mekonnen, Sofoniyas; -, Ulagathan (Dr)
    This study is aimed at assessing the impact of regulatory and supervisory functions of NBE on the activities of Ethiopian private banking industry. The research examined the role played by the regulatory authorities towards a healthy supervision of the operation of banks in Ethiopia and also examined the tools, scope, methods and policy framework of supervision. The study theme was guided by six specific objectives and three research questions. The research borrowed heavily from related research material which was appropriately referenced. It adopted a questionnaire based method of evaluation for the purposively selected private banks namely (.4wash, Dashen, Abyssinia, Wegagen, United, Nib International Bank) and for banking supervision department employees of NBE and interview with the banking supervision department employees of NBE were conducted to meet the specific objective and to answer the research questions and comparing the survey result using descriptive statistics and analysis both results i. e. survey and interview with concurrent mixed method research approach. The results of this combined research methodology reveal that the supervisory and regulatory framework of NBE is effective. But the success of supervisory and regulatory framework of NBE endangered by NBE supervisory capacity particularly related to little experience of the banking supervision department employees and the absence of entry training for the new employees to notify about the banking operation. The effective regulation and supervision activities of NBE, results banking stability in Ethiopia. The stability of banking industry in Ethiopia measured by using three parameters namely profitability, liquidity and asset quality of the banks. Based on this their profitability, liquidity and asset quality of most of private banks in Ethiopia is currently increase time to time. As a result, banking industry in Ethiopia assure public confidence to deposit and withdraw their money at any time. Generally NBE followed preventive regulation method and on-site and off-site supervision method for banks and it has great impact on the activities of banking industry.