The Structure and Performance of Ethiopian Banking Industry

Authors

  • Netsanet Yirga

Keywords:

Structure, performance, competition and HHI

Abstract

This study is aimed at evaluating the performance and structure of Ethiopian banking sector. The deposit, capital and loan performance of all commercial banks in Ethiopia from 2003/4 to 2014/15 were considered in order to investigate the
structure and performance of the sector. A comparative analysis has been made to evaluate the position of public and private owned banks. Furthermore, HHI technique is used to evaluate the competition level of the industry. The performance of the sector in relation with deposit, capital and loan has dramatically increased in the periods considered. the public banks has strong domination in all the measures taken in to account with the domination of CBE which owned more than half of the market share in all aspects. Due to this fact the HHI indicated that the banking sector of Ethiopia is highly concentrated in relation with deposit, loan and capital implying that the competition level in the sector is very low.

Downloads

Download data is not yet available.

References

AdmassuBezabeh and AsayehegnDesta (2014), Banking Sector Reform in Ethiopia, J International Journal of Business and Commerce Vol. 3, No.8, PP 25-38

AlemayehuGeda (2006), the Structure and Performance of Ethiopia’s Financial Sector in the Pre- and Post Reform Period with a Special Focus on Banking Research Paper No. /112. UNU-WIDER

Bonin (1998), Banking in transition economies: Developing market oriented banking sector in eastern Europe, Edward Elgar publishing limited, Chelterham, UK

Boubakari, Cosset and Fisher (1998), Ownership structure, bank performance and risk yaking

Civelec and Al-Alami (1991), An empirical investigation on the concentration- profitability relationship in the Jordanian banking syatem, saving and development

EbisaDeribie (2012), The Effects of Post 1991 Era financial sector deregulations in Ethiopia: An Inspirational guide for agribusiness, J Basic Research Journal of Agricultural Science and Review, Vol. 1(4) pp. 81-87

Harvey, Charles (1998), banking reform in Ethiopia, South African Journal of Economics National bank of Ethiopia, annual reports from 2003/04 to 2014/15

Simrlock (1985), Evidence on the (Non) relationship betweenconcentration and profitability in banking, Journal of money, credit and banking, vol 17 no1

TesfayeBoru (2014), the Determinants of Ethiopian Commercial Banks Performance, J European Journal of Business and Management, Vol.6, No.14

Downloads

Published

2017-06-30

How to Cite

Yirga, N. (2017). The Structure and Performance of Ethiopian Banking Industry. International Journal For Research In Business, Management And Accounting, 3(6), 38–55. Retrieved from https://gnpublication.org/index.php/bma/article/view/57

Issue

Vol. 3 No. 6 (2017): International Journal For Research In Business, Management And Accounting

Section

Articles

License

Copyright (c) 2017 gnpublication@

Creative Commons License

This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

     All journals related to business, management, and accounting can be freely copied, circulated, and reprinted in Green Publication journals, as long as they are duly referenced by original authors. Green Publication follows CC licenses. “A Creative Commons (CC) license is one of the public copyright licenses that allows for the free reuse of an otherwise copyrighted "work." If an author wants to give others the right to publish, use, and build on a work created by the author, he may use a CC license.  Green publication use the CC 4.0 license. This license allows anyone to write, remix, tweak, and build on your work, even commercially, as long as the original creation is attributed to you”. This is the most appropriate license available. Recommended for increasing the distribution and use of licensed products.