DC Field | Value | Language |
dc.contributor.author | TADESSE, ENGDAWORK | - |
dc.date.accessioned | 2016-06-27T07:59:58Z | - |
dc.date.available | 2016-06-27T07:59:58Z | - |
dc.date.issued | 2014-12 | - |
dc.identifier.uri | http://hdl.handle.net/123456789/1522 | - |
dc.description.abstract | The objective of the study is to empirically examine the quantitative effect of credit risk
on the performance of commercial banks in Ethiopia, considering variables related to
lending activities, over the period of 5 years (2008-2012). The empirical investigation
uses the accounting measure of Return on Assets (ROA), which is the dependent
variable, to represent Banks’ performance. The study fundamentally involves both
descriptive and econometrics techniques. The econometrics method used in the study
basically involves assessing the impact of selected internal variables, the provision to
total loans, loan to total asset, credit administration (cost to total loans) and natural
logarithm of total asset (Economies of scale), on the performance of the banking sector.
To this end multiple linear regression model is used to measure the relative weighting
of the independent variables above on a dependent variable.
Basic descriptive statistics was applied for trend analysis. A non- probability method in
the form of judgmental sampling technique is employed in selecting the eight Banks
into the sample and the data are sourced from the Annual Reports of the same Banks
which account for over eighty percent of the total loan and advance in the industry.
The study finds that the selected variables: the provision to total loans, loan to total
asset, credit administration (cost to total loans) and Size (Economies of scale) have
significant effect on the performance of Banks. However, a certain variation in the
magnitude and direction of their effect on the selected profitability measure, Return on
Asset. Based on the study it is recommended that Ethiopian banks need to develop their
credit risk management capacity, there should also be control over overhead costs
related to lending, and increasing the loan book size without compromising the sound
credit planning should be a priority task. | en_US |
dc.language.iso | en | en_US |
dc.publisher | St.Mary's University | en_US |
dc.subject | Determinants, | en_US |
dc.subject | Credit Risk, | en_US |
dc.subject | Bank, | en_US |
dc.subject | Performance, | en_US |
dc.subject | Ethiopia | en_US |
dc.title | IMPACT OF CREDIT RISK ON THE PERFORMANCE OF COMMERCIAL BANKS IN ETHIOPIA | en_US |
dc.type | Thesis | en_US |
Appears in Collections: | Business Administration
|