Performance of Private Commercial Banks in Ethiopia, Pre and Post NBE Bill Periods.

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Date

2016-05

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Addis Ababa University

Abstract

This study aimed at comparing the performance of Private commercial banks in Ethiopia during pre and post Bill Periods. i.e 2008-2011 and 2012-2015 years. The study used quantitative research approach and secondary financial ratio analysis for six private commercial banks. Profitability performance, liquidity performance and asset quality performance of the banks were assessed to compare pre and post bill periods performance of the private banks. Purposive sampling was used to select samples from the total population. The study used trend analysis using graphs for each of the variables in the study to observe the trend on them throughout the observation period. A paired t- test is employed to test the hypothesis that the means of the two periods are same on the eight variables. As a result of hypothesis test it was found there is statistically significant difference between the two periods in respect to profitability measures of Return of Equity (ROE), Cost to Income(C/I) ratio, and Net interest margin (NIM). In addition statistically significant difference between the two periods is observed in the Liquidity measure of Liquid asset to deposit (LAD) ratio and asset quality measure of loan reserve to total loan (LRTL) ratio. The study reveal statistically insignificant difference between the two periods in respect to Return on Asset(ROA) and liquidity measure of Loan to Deposit(LD) ratio and Loan to total asset(LTA) ratios. Finally, the study had recommended on further research in bank performance and regulatory requirements in private banking business

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Oromia Water Works Design and Supervision Enterprise

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