Browsing by Author "Abebe, Wall"

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    Evaluating The Growth Of Ethiopian Private I Banks Using The Sustainable Growth Model
    (A.A.U, 2004-06) Abebe, Wall; Mehari, Mekonnen (Dr).
    This paper exemplified the management of financial growth in Ethiopian private banks in light of the sustainable growth mode/. The actual and sustainable growth rates for each of the banks are computed. A three year combined financial statements are also used to compute these rates. The results of the research confirmed that in none of the periods the sustainable growth rate matched with the actual growth rate. In the study it is observed that private banking industry is a growing industry which requires financing. However, as the results indicated, none of the banks attempted to align these rates. Therefore, the researcher recommended that banks should use this powerful tool, the sustainable growth model, to manage their growth. Finally, it is recommended that banks have to improve both the performance and financial policy ratios to finance their increasing growth. To attain these improvements, banks are recommended to increase volume of deposits, have a clearly defined dividend policy, increase sales or diversify their products and improve their profitability.