Browsing by Author "Niya Getachew"

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    The Impact of COVID-19 on the Financial Sector: The Case of Private Commercial Banks in Ethiopia
    (AAU, 2023-12-09) Niya Getachew; Migbaru Alamerewu PhD
    The outbreak of a new strain of Coronavirus, now known as COVID-19, which has been classified as a global pandemic by the World Health Organization (WHO), has frightened the world. One aspect of the economy that is hit hard by the pandemic and its resultant outcome is the service sector. In Ethiopia, the financial sector faced a challenge by slowing the market, in particular by stalling its economic growth. This paper aims to examine the impact of covid-19 on the performance of the private commercial banking sector in Ethiopia concerning its key performance indicators. Mainly banking performance in return on investment, assets, and net interest margins. This study used DiD model to analyze the data obtained in the study. The DID analysis was employed to assess private banking sector growth in main indicators of performance before (2014-2018) and after Covid (2019-2021). The results indicate thattheDiD estimation model shows that the pandemic affected ROA and ROE negatively. However, the impact was not statistically significant during the study period. The other factor is NIM. In this factor, although it was affected positively the level of significance is low. Thus, it can be concluded that the pandemic has not affected the performance of the private commercial banks during the study period in a meaningful way. But the government is recommended to highly follow up on the banking financial sector to sustain shocks in the economy. This will lead to a sustainable economic outcome and growth for the private financial sector