Browsing by Author "Liza, Birhanu"

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    Determinates of Bank Liquidity Risk of Commercial Banks of Ethiopia
    (Addis Ababa University, 2018-02) Liza, Birhanu; Alem, Hagos (PhD)
    This study was assessed determinants of liquidity risk in commercial Banks of Ethiopia. To find the overall objective of the study data were collected from primary and secondary data sources. Questioners and interviews were also used as instrument of primary data collection while secondary data were collected from annual report of the selected four commercial banks, and other related documents. To determine the sample population of the study area, the study used purposive sampling techniques accordingly; from 18 total commercial banks of Ethiopia, four of them were part of the study considering their experience. In addition, the study also considered sample employee of each banks that work on areas related to liquidity management and monitoring of each banks. Finally the data were interpreted and analyzed using different data analysis techniques such as, using percentage, mean and correlation analysis and multiple regressions. The study overall were analyzed and discussed in three major sections. The first section of the study was discussed data obtained through questioner and interview of each banks employee. The second section of the study were analyzed the major determinant factors of liquidity based on the panel data (reviewed from 2012 - 2016), accordingly, the study tried to analyze the effect of various determinant variables of liquidity such as, the effect of Capital Adequacy, bank size, loan growth, non – performing loan, interest margin profitability, GDP and Inflation on liquidity risk management practice of the studied commercial banks. . The third section of this study was data analyzed cause effect relationship of the major dependent and independent variables using correlation and regression analysis. Accordingly the finding implied that, liquidity position of commercial banks was excess which is caused by low economic development and existence of limited financial instruments in the country. Among the factors that influence liquidity risk management by commercial banks in Ethiopia include: absence of secondary markets, lack of enough financial instruments and absence of strong management information system. Finally, recommendations were forwarded based on the major findings so as to improve the liquidity risk management practice of commercial banks in Ethiopia.