Portfolio Behavior of Commercial Banks in Ethiopia
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Date
2008-06
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Journal ISSN
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Publisher
A.A.U
Abstract
As a part o f financial intermediaries, commercial banks channel funds from the
savers to borrowers in their profitability objective. Moreover, the monetary
policies of the central bank are undertaken by the direct availability of funds or
via in tersest rates for the banks.
The study examines how interest rates banks & deposit relate to the portfolio
choice in the commercial banks. In examining these questions, annual data are
collected for the different the assets & deposits of commercial banks and
interest rates from National Bank of Ethiopia report . The relations among asset
holdings, interest rates & bank deposits are examined based on correlation&
regression methods.
As a result, the holdings of excess reserves, deposits in foreign banks , treasury bills
,government bond and loans &advances in the portfolio found to be change in
different degree with the change in the rates of ,deposit in to reign banks.
treasury bills, government bonds& loans Moreover .assets holdings in the portfolio
constrained by demand, saving & time deposits
Description
Keywords
Commercial Banks, Portfolio Behavior