Paper Status Tracking
Contact us
[email protected]
Click here to send a message to me 3275638434
Paper Publishing WeChat

Article
Affiliation(s)

Wolaita Sodo University, Wolaita Sodo, Ethiopia

ABSTRACT

The study examines factors that determine the financial performance of commercial banks in Ethiopia by using time series data over the period 2004-2019 on the sample of seven banks using secondary data. Moreover, the autoregressive distributed lag model was used. Under this study, both internal and external factors were included as the determinants of bank performance which was measured by loan-to-deposit ratio. The internal factors used in this study include capital adequacy ratio, non-performing loan and loan growth while the external factors are real GDP growth and inflation. Based on the results, specific variables except non-performing loan capital adequacy and loan growth affect banks performance significantly in the long run. In the short run, in addition to those two variables, non-performing loan also affects bank performance. Real GDP growth has negative significant effect on the banks performance in both long and short run. Inflation has insignificant effects on bank performances in both long and short run.

KEYWORDS

commercial banks, financial performance, autoregressive distributed lag model

Cite this paper

References

About | Terms & Conditions | Issue | Privacy | Contact us
Copyright © 2001 - David Publishing Company All rights reserved, www.davidpublisher.com
3 Germay Dr., Unit 4 #4651, Wilmington DE 19804; Tel: 1-323-984-7526; Email: [email protected]