Determinants of Liquidity Risk: Evidence from Ethiopian Private Commercial Banks
| dc.contributor.advisor | Habtamu, Birhanu (PhD) | |
| dc.contributor.author | Kinfe, Tuga | |
| dc.date.accessioned | 2019-03-10T11:45:19Z | |
| dc.date.accessioned | 2023-11-04T07:57:22Z | |
| dc.date.available | 2019-03-10T11:45:19Z | |
| dc.date.available | 2023-11-04T07:57:22Z | |
| dc.date.issued | 2019-03 | |
| dc.description | A Thesis Submitted to the School of Graduate Studies of Addis Ababa University in Partial Fulfillment of the Requirements for the Degree of Master of Science in Accounting and Finance. | en_US |
| dc.description.abstract | Risk is part and parcel of banking business. This study examines to find out the determinants of liquidity risk in Ethiopian private commercial banks. The study identifies some of bank specific and macroeconomic determinants that influence liquidity risk of private commercial banks in Ethiopia based on empirical literature review. The study used a sample of thirteen private commercial banks covering the period from 2000 to 2017 year financial statements with unbalanced panel data. Financing gap to total asset ratio was used as proxy for liquidity risk. The random effect regression technique and correlation analysis was used to analyze the data using the econometric package STATA version 13 software. The random effect regression revealed that from bank specific explanatory variables loan growth, return on asset, leverage and operational inefficiency have significant influence on private commercial banks liquidity risk. Lending interest rate and money supply growth also have significant impact on liquidity risk of Ethiopian private commercial banks from macroeconomic variable. However, according to the study size of the bank, tangibility and real GDP growth rate are not power full variable to influence liquidity risks of Ethiopian private commercial banks. Finally, each commercial bank should consider the fluctuation of loan growth, return on asset, leverage, operational inefficiency, lending interest rate and growth in money supply in their respective liquidity risk policy as a framework to control liquidity risk. | en_US |
| dc.identifier.uri | http://etd.aau.edu.et/handle/123456789/16662 | |
| dc.language.iso | en_US | en_US |
| dc.publisher | Addis Ababa University | en_US |
| dc.subject | Bank Specific | en_US |
| dc.subject | Ethiopian Private Commercial Banks | en_US |
| dc.subject | Liquidity Risk and Macroeconomic | en_US |
| dc.title | Determinants of Liquidity Risk: Evidence from Ethiopian Private Commercial Banks | en_US |
| dc.type | Thesis | en_US |