Browsing by Author "Yonas Gashaw"

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    Determinants of Commercial Bank Performance: A Case Study in Selected East African Countries
    (A.A.U, 2024-06-24) Yonas Gashaw; Temesgen W. (PhD)
    The main objective of commercial banks is profit maximization because commercial banks are Business institutions established for generating profit. Hence, this study examines determinants of commercial banks performance case study in selected east African commercial banks. The data covered the period from 2018-2022 G.C. for the sample of selected fifty commercial banks. Quantitative research approach and explanatory research design were adopted in carrying out this research. Secondary data were collected from the selected fifty commercial banks using a purposive sampling technique and macro- economic data were collected from NBE and World Bank report while internal factor data were collected from audited financial statements. The study used both descriptive and inferential statistics. Mean and standard deviation were used as descriptive statistics, whereas correlation and panel regressions were used from inferential statistics using stata. The results of the regression analysis demonstrate that, while liquidity and bank size have considerable negative effects on NIM, inflation, the loan to deposit ratio, and income diversification have significant positive effects. This study suggests that banks can enhance their stability and performance by implementing several key strategies. Enhancing the loan-to-deposit ratio can improve asset utilization and profitability. Promoting income diversification allows banks to mitigate risks associated with reliance on a single income source. Prudent liquidity management ensures banks can meet short-term obligations without compromising financial health. Optimizing bank size can lead to economies of scale and better resource allocation. Monitoring inflation trends helps in adjusting interest rates and maintaining purchasing power. Lastly, policy support for economic stability, such as regulatory measures and fiscal policies, creates a conducive environment for sustainable banking operations.
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    Determinants of Commercial Bank Performance: a Case Study in Selected East African Countries
    (A.A.U, 2024-05-24) Yonas Gashaw; Temesgen W. (PhD)
    The main objective of commercial banks is profit maximization because commercial banks are Business institutions established for generating profit. Hence, this study examines determinants of commercial banks performance case study in selected east African commercial banks. The data covered the period from 2018-2022 G.C. for the sample of selected fifty commercial banks. Quantitative research approach and explanatory research design were adopted in carrying out this research. Secondary data were collected from the selected fifty commercial banks using a purposive sampling technique and macro- economic data were collected from NBE and World Bank report while internal factor data were collected from audited financial statements. The study used both descriptive and inferential statistics. Mean and standard deviation were used as descriptive statistics, whereas correlation and panel regressions were used from inferential statistics using stata. The results of the regression analysis demonstrate that, while liquidity and bank size have considerable negative effects on NIM, inflation, the loan to deposit ratio, and income diversification have significant positive effects. This study suggests that banks can enhance their stability and performance by implementing several key strategies. Enhancing the loan-to-deposit ratio can improve asset utilization and profitability. Promoting income diversification allows banks to mitigate risks associated with reliance on a single income source. Prudent liquidity management ensures banks can meet short-term obligations without compromising financial health. Optimizing bank size can lead to economies of scale and better resource allocation. Monitoring inflation trends helps in adjusting interest rates and maintaining purchasing power. Lastly, policy support for economic stability, such as regulatory measures and fiscal policies, creates a conducive environment for sustainable banking operations.