The Effect of Bank Regulation on Profitability of Private Commercial Banks in Ethiopia

Anagaw, Addisu (2017) The Effect of Bank Regulation on Profitability of Private Commercial Banks in Ethiopia. Masters thesis, Addis Ababa University.

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This study empirically examines the effect bank regulation on performance of private commercial banksin Ethiopia and interprets the result by relating with the regulations. The studyused balanced panel model in examining the regression model and collect data from sevenprivate commercial bankscovering the period of eleven (11)consecutive years, 2005- 2015. To this end, the study employed a quantitativeresearch approach by documentary analysis based on their audited financial statement. The study used one dependent variable return on asset (ROA), five independentvariables that are equity investment, legal reserve requirement, capital requirement, Capital adequacy and bank size.The regression result showedthat capital requirement and bank size had a positive and significant effect on profitability of private commercial banks. Capital adequacy and reserve requirement had negative and significant effect on profitability. Equity investment had negative but insignificant effect on performance of private commercial banks in Ethiopia. The research provides evidence of majorityvariables used to measurebank regulationhas an effect on profitability of Ethiopian private commercial banks. Hence, the study recommendsthat Ethiopian private commercial banks should give due attentionon bank regulationto enhance their profitability significantly.

Item Type: Thesis (Masters)
Uncontrolled Keywords: Bank, Bank regulation and Performance
Subjects: H Social Sciences > HB Economic Theory
H Social Sciences > HD Industries. Land use. Labor > HD28 Management. Industrial Management
H Social Sciences > HF Commerce > HF5601 Accounting
H Social Sciences > HG Finance
Q Science > Q Science (General)
Q Science > QA Mathematics
Divisions: Africana
Depositing User: Andriamparany Edilbert RANOARIVONY
Date Deposited: 27 Jul 2018 10:09
Last Modified: 27 Jul 2018 10:09

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