The Effect of Bank Regulation on Profitability and Liquidity of Private Commercial Banks in Ethiopia
| dc.contributor.advisor | Abebe, Yitayew(PhD) | |
| dc.contributor.author | Fanos, Assefa | |
| dc.date.accessioned | 2020-07-09T07:49:00Z | |
| dc.date.accessioned | 2023-11-04T07:57:38Z | |
| dc.date.available | 2020-07-09T07:49:00Z | |
| dc.date.available | 2023-11-04T07:57:38Z | |
| dc.date.issued | 2020-06 | |
| dc.description | A thesis submitted to Addis Ababa University College of business and economics department of accounting and finance in partial fulfillment of the requirements for degree of masters of Science in accounting and finance. | en_US |
| dc.description.abstract | Banking occupies one of the most important positions in the modern economic world. It is necessary for trade and industry. The objective of this study was to determine the relationship between bank regulations with bank financial performance and liquidity. Regulations are the independent variable while financial performance and liquidity are the dependent variable. Financial performance is measured using financial ratios of return on equity while liquidity is measured by current asset divided by current liability. The study used independent variables that are equity investment, legal reserve requirement, capital requirement, capital adequacy, management efficiency and NBE bill purchase requirement. The study used multiple linear regressions models to investigate bank regulations that have impact on the profitability and liquidity of commercial banks in Ethiopia. To obtain information relevant to the study, secondary data was used. Besides, in the study all operational commercial banks in Ethiopia were taken as study population and purposive sampling method was used to select sample from this population with in the period of study is between 2008 and 2017 with a total of 70 observations. The regression result showed that capital adequacy and management efficiency had negative and significant effect on profitability of private commercial banks in Ethiopia and the remaining regulatory variables legal reserve requirement, capital requirement, NBE Bill Purchase and equity investment had insignificant effect on profitability of private commercial banks. While a legal reserve requirement had positive and significant effect on liquidity of private commercial banks in Ethiopia. NBE Bill Purchase and equity investment had positive and insignificant effect on liquidity of private commercial banks in Ethiopia mean the pre and post policy periods comparison revealed that a relatively better liquidity record for private commercial banks during the time of post policy restriction and the remaining two regulatory variables capital adequacy and capital requirement had negative and insignificant effect on liquidity of private commercial banks. Therefore, the study recommends that National Bank of Ethiopia and Ethiopian private commercial banks should give due attentions on bank regulations to enhance private banks profitability significantly and to stable as whole the macro economy of the country. | en_US |
| dc.identifier.uri | http://etd.aau.edu.et/handle/123456789/21906 | |
| dc.language.iso | en | en_US |
| dc.publisher | A.A.U. | en_US |
| dc.subject | Banking liquidity | en_US |
| dc.subject | Banking profitability | en_US |
| dc.subject | NBE regulations | en_US |
| dc.subject | Private banks | en_US |
| dc.title | The Effect of Bank Regulation on Profitability and Liquidity of Private Commercial Banks in Ethiopia | en_US |
| dc.type | Thesis | en_US |