Evaluating The Growth Of Ethiopian Private I Banks Using The Sustainable Growth Model
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Date
2004-06
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A.A.U
Abstract
This paper exemplified the management of financial growth in
Ethiopian private banks in light of the sustainable growth mode/. The
actual and sustainable growth rates for each of the banks are
computed. A three year combined financial statements are also used
to compute these rates. The results of the research confirmed that in
none of the periods the sustainable growth rate matched with the
actual growth rate.
In the study it is observed that private banking industry is a growing
industry which requires financing. However, as the results indicated,
none of the banks attempted to align these rates.
Therefore, the researcher recommended that banks should use this
powerful tool, the sustainable growth model, to manage their growth.
Finally, it is recommended that banks have to improve both the
performance and financial policy ratios to finance their increasing
growth. To attain these improvements, banks are recommended to
increase volume of deposits, have a clearly defined dividend policy,
increase sales or diversify their products and improve their profitability.
Description
A Project As A Partial Fulfillment For Master of Business Administration
Keywords
Evaluating The Growth Of Ethiopian Private