The Implication of the upcoming capital market on Ethiopian Commercial Banks
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Date
2024-06-04
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A.A.U
Abstract
This thesis explores the potential implications of the upcoming capital market on Ethiopian
commercial banks. The research aims to identify the potential benefits and challenges that can
arise from the introduction of the capital market for these banks. Using descriptive research design
and content analysis method was employed, the study focused on five purposively selected banks:
Awash Bank, Dashen Bank, Abyssinia Bank, Hibret Bank, and Zemen Bank. The findings suggest
that the capital market can bring about several benefits, including improved risk management,
access to long-term financing, and a wider range of funding sources. Additionally, it can lead to
operational streamlining, innovation, and the evolution of commercial banks into comprehensive
financial institutions. However, the introduction of the capital market also poses challenges, such
as exposing skill and technological gaps, and introducing new risks associated with new financial
instruments. To capitalize on the opportunities presented by the capital market, the researcher
recommends that commercial banks invest in staff training, technological advancement, and
diversification of their services to meet the needs of the capital market.