Determinants of Financial Risks of Private Commercial Banks In Ethiopia
| dc.contributor.advisor | Abate, Sewale (PhD) | |
| dc.contributor.author | Tona, Emawayih | |
| dc.date.accessioned | 2018-06-25T11:09:01Z | |
| dc.date.accessioned | 2023-11-08T14:37:41Z | |
| dc.date.available | 2018-06-25T11:09:01Z | |
| dc.date.available | 2023-11-08T14:37:41Z | |
| dc.date.issued | 2017-02 | |
| dc.description.abstract | While financial risk is one of the major risks of banks that can affect the development of financial system, identifying the determinants of this risk is crucial for the soundness of financial sector. The main objective of this study is to find out determinants of financial risk in Ethiopian private commercial banks covering a period of fifteen years (2001-2015) on six sample private commercial banks using quantitative research approach. This study directly examined indicators of financial risk in terms of credit risk and liquidity risk in an objective manner from a wide range of variables. Bank specific and macroeconomic variables were tested for the two dependent variables credit and liquidity risk models by using the balanced panel fixed effect regression model. The findings of the study for credit risk model revealed that Loan to deposit ratio (Liquidity), income diversification, non performing loan, real GDP growth rate and inflation have significant positive impact on credit risk whereas return on asset found significant negative impact on credit risk of Ethiopian private banks. The rest three bank specific variables Loan growth, bank size and operating inefficiency had no significant effect on credit risk of Ethiopian private banks during the test period 2001 to 2015.The regression result of the second financial risk indicator liquidity risk revealed that capital adequacy ratio and Real GDP growth rate have significant positive impact on liquidity risk whereas Banks age and Average Nominal lending interest rate have significant negative impact on liquidity risk. Finally the result indicates that return on asset, Tangibility and impaired loan have negative but insignificant relationship with liquidity risk. Key words: Financial risk, credit risk, Liquidity risk, Ethiopian Private Commercial Banks | en_US |
| dc.identifier.uri | http://etd.aau.edu.et/handle/123456789/3185 | |
| dc.language.iso | en_US | en_US |
| dc.publisher | Addis Ababa University | en_US |
| dc.subject | Financial risk; credit risk; Liquidity risk; ethiopian Private Commercial banks | en_US |
| dc.title | Determinants of Financial Risks of Private Commercial Banks In Ethiopia | en_US |
| dc.type | Thesis | en_US |