The Effect of Bank Regulation on Financial Performance of Private Commercial Banks in Ethiopia
| dc.contributor.advisor | Workineh, Mesfin (PhD) | |
| dc.contributor.author | Hailu, Elias | |
| dc.date.accessioned | 2022-06-28T07:21:03Z | |
| dc.date.accessioned | 2023-11-04T09:41:50Z | |
| dc.date.available | 2022-06-28T07:21:03Z | |
| dc.date.available | 2023-11-04T09:41:50Z | |
| dc.date.issued | 2022-04 | |
| dc.description.abstract | This study assesses the effect of bank regulations on Financial-performance of private banks in Ethiopia by employing regulatory variables, Bank-specific variables, and Macroeconomic variables by interpreting the result among financial performance and regulation. Balanced fixed effect panel regression is used for the data of twelve private commercial banks found in Ethiopia in the sample covering the period from 2011 to 2020 for ten consecutive years. The study follows a quantitative research approach, and it is analyzed based on their audited financial statement. The study utilized return on asset (ROA) as a dependent variable and seven independent variables. Those are: reserve requirement, liquidity requirement, asset quality, minimum capital requirement, market risk, management efficiency, and real GDP growth rate. The outcome of panel data regression analysis showed that capital requirement and management efficiency had a positive and statically significant effect on the financial performance of private commercial banks. The private commercial banksgetbenefited by raising their paid-up capital for expanding the market share, growing competitiveness, financial performance, and absorbing unexpected risks. Reserve requirements had a negative and statically significant effect on the financial performance of private commercial banks. So the result recommended that before applying the regulation, NBE should use sufficient studies and amend the requirement to enhance private commercial banks. Liquidity position determines how well liquid to cover immediate disturbance to the financial health of the bank. Asset quality is a good indicator of financial health. So, it must be kept by the bank's practice, and NBE continue its monitoring to further improve financial resilience and soundness of banks and the banking system. | en_US |
| dc.identifier.uri | http://etd.aau.edu.et/handle/123456789/32166 | |
| dc.language.iso | en | en_US |
| dc.publisher | A.A.U | en_US |
| dc.subject | Bank | en_US |
| dc.subject | bank regulation | en_US |
| dc.subject | financial performance | en_US |
| dc.title | The Effect of Bank Regulation on Financial Performance of Private Commercial Banks in Ethiopia | en_US |
| dc.type | Thesis | en_US |