Off-Balance Sheet Commitments: Determination of practice and Impact on Performance on Ethiopian Private Commercial Banks
| dc.contributor.advisor | Asres, Abitie (PhD) | |
| dc.contributor.author | Yeshimebet, Tefera | |
| dc.date.accessioned | 2020-07-23T09:25:42Z | |
| dc.date.accessioned | 2023-11-04T09:37:17Z | |
| dc.date.available | 2020-07-23T09:25:42Z | |
| dc.date.available | 2023-11-04T09:37:17Z | |
| dc.date.issued | 2020-05 | |
| dc.description | A Thesis Submitted To The Department Of Management In Partial Fulfilement Of The Requirments In Executve Masters Of Business Administration | en_US |
| dc.description.abstract | One of the striking developments in today’s banking industry is the increasing tendency of banks engagement in off-balance sheet commitments (OBC). Using off-balance sheet as a means to increase income/profit has been increasing from time to time. On the contrary, there are so many risks resulting from such commitments like credit risk, liquidity risk, market risks, operational risk, capital adequacy risk, etc. Thus, it is necessary to establish sound OBC management system in order to manage the various risks emerged from these items and ensure sustainability of the financial institutions. To obtain an in-depth understanding the overall OBC risk, the researcher employed both quantitative and qualitative data. Qualitative data was gathered from employees of eleven privates banks in the form of questionnaire while the quantitative data were obtained from the National Bank of Ethiopia for ten years period from 2010-2019. Both descriptive and analytical research methods were applied to assess the OBC management practice and the inherent risk of the product by investigating its relationship with risk and return. Mean as well as standard deviation measures were utilized to analyse the data and to make a broad argument to answer the particular research questions. Furthermore, the analysis considered correlation and regression analysis to test the study hypotheses. Statistical Package for Social Sciences (SPSS) was applied to analyse descriptive statistics, correlation and regression analyses. As per the result, OBC is increasing at an increasing trend, and OBC had significant negative impact on the bank’s liquidity and capital adequacy risk, while it had significant and positive relationship with revenue but negative insignificant relationship with credit risk and ROE. The study also revealed OBC management practice of the private banking industry including the role of NBE was found unsatisfactory and not commensurate with the inherent risk that the product bears and its level of exposure. | en_US |
| dc.identifier.uri | http://etd.aau.edu.et/handle/123456789/21952 | |
| dc.language.iso | en | en_US |
| dc.publisher | A.A.U | en_US |
| dc.subject | Ethiopian private commercial banks | en_US |
| dc.subject | Off-balance sheet management | en_US |
| dc.subject | off-balance sheet Commitments | en_US |
| dc.subject | Risk, return | en_US |
| dc.title | Off-Balance Sheet Commitments: Determination of practice and Impact on Performance on Ethiopian Private Commercial Banks | en_US |
| dc.type | Thesis | en_US |