Risk Management and Its Impact on Financial Performance of Commercial Banks in Ethiopia
| dc.contributor.advisor | Yitayew, Abebe (PhD) | |
| dc.contributor.author | Mitku, Endaweke | |
| dc.date.accessioned | 2018-06-25T11:51:34Z | |
| dc.date.accessioned | 2023-11-08T14:37:49Z | |
| dc.date.available | 2018-06-25T11:51:34Z | |
| dc.date.available | 2023-11-08T14:37:49Z | |
| dc.date.issued | 2015-06 | |
| dc.description.abstract | Risk management has become an important topic for financial institutes, especially since the business sector of financial services is related to conditions of uncertainty. The turmoil of the financial industry emphasizes the importance of effective risk management procedures. Consequently, this thesis studies “Risk management and its impact on performance in Ethiopian Commercial Banks.” The aim of this paper is therefore to identify the impact of risk management and its impact on bank performance on the Ethiopian bank performance . Balanced fixed effect panel regression was used for the data of eight commercial banks in the sample covered the period from 2002 to 2013. Four risk management variable that affects banks performance were selected and analyzed. The results of panel data regression analysis showed that credit risk management indicator (NPLR), Liquidity risk management indicator(LIQR) and operational risk indicator (CIR) had negative and statistically significant impact on banks performance .Capital adequacy ratio had positive statistically insignificant impact on banks performance. In addition to this the study is also analysis of primary data by descriptive statistical tools and on hypothesis testing using regression model. This leads the researcher to conclude in the last section that banks with good risk management policies have a lower risk and relatively higher return on asset. Finaly None performing loan ratio, liquidity ratio and cost to income ratio are significant key drivers of performance of commercials banks in Ethiopia. Indeed focusing and reengineering the institutions alongside these indicators could enhance the profitability as well as the performance of the commercialbanksinEthiopia. Key Words; Bank Performance, Risk Management, Liquidity Risk, Credit Risk Operational Risk | en_US |
| dc.identifier.uri | http://etd.aau.edu.et/handle/123456789/3220 | |
| dc.language.iso | en_US | en_US |
| dc.publisher | Addis Ababa University | en_US |
| dc.subject | Bank Performance; risk management; liquidity Risk; credit risk operational risk | en_US |
| dc.title | Risk Management and Its Impact on Financial Performance of Commercial Banks in Ethiopia | en_US |
| dc.type | Thesis | en_US |