Soundness of Ethiopian Banks
Open Access
- 30 April 2015
- journal article
- Published by Center for Strategic Studies in Business and Finance SSBFNET in International Journal of Finance & Banking Studies (2147-4486)
- Vol. 4 (2), 29-37
- https://doi.org/10.20525/ijfbs.v4i2.218
Abstract
A well-functioning financial institution will sustain a countries economic development and play a great role in reduction of poverty. One of the major participants in the financial institution is the banking industry. However, the mal-functioning of the banking system can be extremely costly to the real economy. As Bank is one of the participants and major key player in the financial institutions, it needs a continuous assessment by its supervisory and management. Mere ratio analyses are commonly used Performance measurement among the banking industry in Ethiopia. Nonetheless, these financial ratios are more of traditional as well as partial measurements. As such this study conducted using CAMEL framework set by bank for international settlement. The study takes secondary data which are gathered from audited annual reports of all banks. The result shows CAMEL framework is the best fit measurement for Ethiopian Banks and it give a comprehensive result which is very helpful for the governor to set a well determined policy and procedure.Keywords
This publication has 4 references indexed in Scilit:
- Financial performance and ownership structure of Ethiopian commercial banksJournal of Economics and International Finance, 2012
- Determinants of capital adequacy in the Banking Sub-Sector of the Nigeria Economy: Efficacy of Camels. (A Model Specification with Co-Integration Analysis)International Journal of Academic Research in Business and Social Sciences, 2011
- The Determinants of Commercial Bank Profitability in Sub-Saharan AfricaSSRN Electronic Journal, 2009
- Nonperforming Loans In Sub-Saharan Africa : Causal Analysis And Macroeconomic ImplicationsPublished by World Bank ,2005