Browsing by Author "Mekonnen Tekalign"

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    Possibility of Syndicate Lending in Ethiopia Banking Industry
    (A.A.U, 2011-06) Mekonnen Tekalign; Ponalla Venkati
    There is a considerable expansion of the volume of syndicated loans in emerging markets in the recent years. While until recently large majority of loan transactions in Ethiopia historically have been bilateral transactions that are provided by single banks. This thesis empirically investigates factors that influence the possibility of syndicate lending in Ethiopia banking industry using the financial information of 8 banks for the period of 2005-20 10. The study investigate significant role of loan characteristics and of lending limit,liquidity, capital adequacy and concentration on the possibility of syndicate lending on Ethiopia banking industry. The result of the study indicates that lending limit and liquidity positively influences the possibility of syndicate lending in Ethiopia banking industry while capital adequacy and concentration negatively influences. This shows Banks does not join loan syndication when their capital levels are sufficient enough to support the extra risk taken. The results of the study also support the efforts of authorities to increase banking competition and efficiency, and to implement binding banking regulation on capital requirement to promote the possibility of syndicated loan. Po
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    Possibility of Syndicate Lending in Ethiopia Banking Industry. (Case of selected eight banks).
    (Addis Ababa University, 2011-06) Mekonnen Tekalign; Ponnalla Venkati
    There is a considerable expansion of the volume of syndicated loans in emerging markets in the recent years. While until recently large majority of loan transactions in Ethiopia historically have been bilateral transactions that are provided by single banks. This thesis empirically investigates factors that influence the possibility of syndicate lending in Ethiopia banking industry using the financial information of 8 banks for the period of 2005-2010. The study investigate significant role of loan characteristics and of lending limit, liquidity, capital adequacy and concentration on the possibility of syndicate lending on Ethiopia banking industry. The result of the study indicates that lending limit and liquidity positively influences the possibility of syndicate lending in Ethiopia banking industry while capital adequacy and concentration negatively influences. This shows Banks does not join loan syndications when their capital levels are sufficient enough to support the extra risk taken. The results of the study also support the efforts of authorities to increase banking competition and efficiency, and to implement binding banking regulation on capital requirement to promote the possibility of syndicated loan