Public Policy and the Banking System in Ethiopia Post 1991
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Date
2007-07
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A.A.U
Abstract
The Ethiopian banking system undergone reforms after 1991 and several
measures have been taken. Despite these measures, the Ethiopian banking
systems appears to have a structural problem. The banking system is highly
dominated by public ownership. it is affected by weak credit culture and poor risk
assessments. The foreign entry to the banking industry also hinders the
introduction of new products and technology. Drawing documentary study and
data from the primary sources, various issues of public policy that have impact
on the banking system is assessed. Moreover, secondary data are utilized and
examined. Public policy has to play decisive role in crafting the rules of the game
as appropriate to the temporal economic development commitments as well as
macroeconomic stability in a perquisite for smooth and effective leadership of
regulatory and a change management could be sought. To foster the
development of the banking institution so as to play a vital role in the economy,
the participation of private sectors both domestic and foreign has to be
encouraged.
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Keywords
Banking System, Public Policy