Browsing by Author "Assefa Minyahil"

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    Performance of Commercial Banks of Ethiopia and Global Financial Crisis
    (Addis Ababa University, 2013-05) Assefa Minyahil; P. Vencati
    Commercial banks play a vital role in the economic resource allocation of countries. Investigating the performance of banks has been one of the more popular topics among researchers in banking studies. Hence, to contribute to the existing knowledge in Ethiopia, this study sought to analyze the performance of Commercial banks of Ethiopia and the impact of Global Financial crisis, using a sample of seven commercial banks over the period 2004/5-2010/11. The financial performance of the banks measured using basically CAMEL.. The study found that, during the study period, the performance of Commercial banks in Ethiopia mainly changes in accordance with NBE directives. The directives imposed at different time affected all components of CAMEL negatively or positively. However, regardless the tight monitory directives of NBE their performance had been improved. During the financial crisis shortage offoreign exchange earnings significantly reduced commercial banks of Ethiopia ability to meet the foreign exchange needs of their importing clients adequately. Also interest income from foreign deposit significantly decreased during the financial crisis. On the other hand, higher gains in foreign exchange dealings than usual by scoring 6% growth. Total revenue from international activities and return on asset growth decreased by 39% and 16% respectively. Also deposit in foreign banks slightly increased by 2%. However these were not statistically significant. Keywords: Financial Performance, CAMEL model, Global Financial Crisis