Browsing by Author "Melese Nigist"

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    Determinants of Banks Liquidity: Empirical Evidence on Ethiopian Commercial Banks
    (Addis Ababa University, 2015-01) Melese Nigist; Laxmikantham Laxmikantham
    Liquidity creation is the main concerns of commercial banks since it is crucial for its existence;hence the main objective of this study was to identify the determinants of commercial banks liquidity in Ethiopia. The data covered the period from 2007-2013 for the sample of ten commercial banks in Ethiopia and used secondary data. Both bank specific and macroeconomic variables were analyzed by employing the balanced panel fixed effect regression model and the result of the study revealed that capital adequacy, profitability, and real GDP growth rate have negative and statistically significant impacts on liquidity of Ethiopian commercial banks while bank size has positive and statistically significant impact on liquidity. Whereas nonperforming loan, loan growth, inflation rate, and interest rate margin were found to be statistically insignificant/ has no any impact on liquidity of Ethiopian commercial banks for the tested period. Keyterms: Liquidity, Ethiopian commercial banks, liquidity determinants, balanced panel data