Browsing by Author "Zagwe Birhan"

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    Factors Affecting Liquidities of Banks: Evidence from the Private Banks of Ethiopia
    (Addis Ababa University, 2018-01) Zagwe Birhan; Alem Hagos
    The purpose of this research was to see how the NBE bill purchase requirement affects Ethiopian private commercial Banks liquidity. This study categorizes the independent factors into bank specific factors and macroeconomic factors. The bank specific factors include capital adequacy, net interest margin, credit risk, bank size and Loan Growth while the macroeconomic factors include National bank Bill. The panel data used for the sample of ten private commercial banks in Ethiopia from 2011 to 2016 year and estimate using Radom Effect Model (REM), data presented by using descriptive statistics and the balanced correlation and regression analysis for liquidity ratios conducted. The study shows that R-squared statistics and the adjusted-R squared statistics of the model are 80.18% and 76.88% respectively. This indicates that the changes in the independent variables (capital adequacy, credit risk, net interest margin, loan growth, and exposure to NBE bill) collectively explain 76.88% of the changes in the dependent variable (liquidity) and the remaining 23.12% of changes is explained by other factors which are not included in the model. Thus these variables collectively, are good explanatory variables of the liquidity of commercial banks Ethiopia.