Browsing by Author "Tilahun Fekade"

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    Impact of Non-Existence of Financial Markets in Asset-Liability Management of Ethiopian Financial Institutions
    (2008-06) Tilahun Fekade; Mekonnen Mehari
    The subject of Asset-Liability management received more attention in modern financial and risk management of the financial sector. In this project, attempt is made to show the Ethiopian private commercial banks Asset-Liability matching effort. The research was mainly conducted through critical evaluation of the six selected commercial banks. ALM models which are evolved through time and took their current shape are used to determine the positions those banks. The research tried to address the problem of absence of organized financial market in the management of Assets and Liabilities. The outcome of the research suggested that, most of the banks are not in ideal liquidity position. Either, they are skewed to the right or left of the perfect match. It had also been observed that, banks effort towards their foreign currency position impaired by the rigid directives of the central bank. In line with this, potential solutions which were believed to alleviate the problem were recommended. Despite the above fact, bank were able to register remarkable increase in the period of six years from 2002 to 2006.To be successful, however, they are expected to capitalize these phenomena for maximum possible benefits.