Banking sector performance evaluation in Ethiopia for the period of growth and transformation plan (GTP-II): private vs public commercial banks

IF 1.3 Q3 BUSINESS, FINANCE Journal of Banking Regulation Pub Date : 2022-11-30 DOI:10.1057/s41261-022-00209-0
Bekana Dembel Tura
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Abstract

The main objective of this study was to evaluate and compare the financial performance of commercial banks in Ethiopia during the implementation of growth and transformation plan II. Moreover, determinants of financial performance were examined. The study was conducted using secondary data obtained from the National Bank of Ethiopia, and the official website of each commercial bank. Multiple panel regression and independent sample t tests were used to show the relationship and to compare the financial performance of commercial banks between the study periods. The ratio of non-interest expenses to total expense, log_net profit per employee, interest income to total income, and exchange rate were variables with a positive and significant effect on the financial performance of commercial banks, while log_total loans per branch and inflation affected negatively the financial performance measured by return on assets. Whereas, the ratio of debt to equity, log_net profit per employee, total liquid assets to total deposits, interest income to total income, and exchange rate have a positive and significant impact, while the ratio of loan loss provision to total loan, log_total loans per branch, and inflation negatively and significantly affected financial performance measured by ROE. The independent sample t test shows that except for the ratio of total loans to total deposits and total capital to total assets, the remaining variables did not show significant differences between state and publicly owned banks.

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埃塞俄比亚增长和转型计划(GTP-II)期间的银行业绩效评估:私营与公共商业银行
本研究的主要目的是评估和比较埃塞俄比亚商业银行在实施增长和转型计划II期间的财务绩效。此外,财务绩效的决定因素进行了检查。本研究使用从埃塞俄比亚国家银行获得的二手数据和各商业银行的官方网站进行。采用多面板回归和独立样本t检验来显示研究期间商业银行财务绩效之间的关系和比较。非利息费用占总费用的比例、log_per employee净利润、利息收入占总收入的比例和汇率是对商业银行财务绩效有显著正向影响的变量,而log_per branch loans和通货膨胀对资产收益率衡量的财务绩效有负向影响。而负债权益比、每位员工的log_净利润、总流动资产与总存款、利息收入与总收入、汇率对财务绩效有显著的正向影响,而贷款损失拨备与总贷款的比率、每个分行的log_总贷款和通货膨胀率对以ROE衡量的财务绩效有显著的负向影响。独立样本t检验表明,除了总贷款与总存款的比率和总资本与总资产的比率外,其余变量在国有银行与国有银行之间没有显著差异。
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来源期刊
CiteScore
3.70
自引率
6.20%
发文量
21
期刊介绍: Under the guidance of its highly respected Editors and an eminent and truly international Editorial Board?Journal of Banking Regulation?has established itself as one of the leading sources of authoritative and detailed information on all aspects of law and regulation affecting banking institutions.Journal of Banking Regulation?publishes in each quarterly issue detailed briefings analyses and updates which are of direct relevance to practitioners working in the field while meeting the highest intellectual standards.Journal of Banking Regulation?publishes the latest thinking and best practice on:Basel I II and IIIModels for banking supervisionInternational accounting standardsDeposit protectionEnforcement decisions in banking regulation and supervisionCross-border competition in banking servicesCorporate governance in banksHarmonisation in banking marketsSupervising credit riskAnti-money laundering legislation and regulationsMonetary integrationRisk capital and capital adequacySystemic risk in banking operationsCross-border regulationCross-border bank insolvencyModels for banking riskEssential reading for:central bankersbanking supervisorsfinancial regulatorsbankerscompliance officersheads of risk managementpolicy makersbank associationslawyers specialising in banking lawaccountantsinternal and external bank auditorsacademics and researchers
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