Soundness of Ethiopian Banks

Hamu Kedir Mohammed, Yonas Mekonnen Wetere, W/Mikael Shibru Bekelecha
2016 International Journal of Finance & Banking Studies  
<p>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
more » ... io 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.</p>
doi:10.20525/ijfbs.v4i2.218 fatcat:uokrpgx4hfaj3p2f6gmirdtk64