Factors Affecting Liquidity of Commercial Banks: (Case Study on Selected Banks in Ethiopia)
| dc.contributor.advisor | Abebe Yitayew(PhD) | |
| dc.contributor.author | Desibelewe Erkihune | |
| dc.date.accessioned | 2024-04-23T06:46:31Z | |
| dc.date.available | 2024-04-23T06:46:31Z | |
| dc.date.issued | 2023-08-08 | |
| dc.description.abstract | The main objective of the study is to investigate the factors that affect Ethiopian commercial bank’s liquidity. The data covered the period from 2018-2022 G.C for the sample of selected ten commercial banks. Quantitative research approach and explanatory Research design were adopted in carrying out this research. Secondary data were collected from the selected ten commercial banks using purposive sampling technique. Macro- economic data are collected from NBE and World Bank report while internal factor data were collected from audited financial statements. The study used both descriptive and inferential statistics. Mean and standard deviation were used as descriptive statistics, whereas correlation and panel regressions were used from inferential statistics using stata. The findings of the study shows that bank size, gross domestic product, and national bank bill purchase have negative and statistically significant impact on liquidity and profitability has positive significant effect on commercial banks liquidity. Deposit growth, reserve requirement and asset management have positive and statistically insignificant impact on liquidity. In addition, Capital adequacy and operational efficiency have negative insignificant effect on bank liquidity. The study suggests that focusing and reengineering the banks alongside the key internal factors could enhance the liquidity position of the commercial banks in Ethiopia. Moreover, banks in Ethiopia should not only be concerned about internal structures and policies, but they must consider the macroeconomic environment together in developing strategies to improve the liquidity position of the banks. On the other side the policy maker, NBE has to consider the existing economic conditions and promote favorable environment to the development of the financial sector. | |
| dc.identifier.uri | https://etd.aau.edu.et/handle/123456789/2762 | |
| dc.language.iso | en | |
| dc.publisher | A.A.U | |
| dc.title | Factors Affecting Liquidity of Commercial Banks: (Case Study on Selected Banks in Ethiopia) | |
| dc.type | Thesis |