Bank Regulations and Firm Performance: In the Case of Ethiopian Commercial Banks
Jundi Mohammed Yusuf,
Anwar Adem Shikur
Issue:
Volume 9, Issue 4, August 2023
Pages:
58-67
Received:
8 August 2023
Accepted:
30 August 2023
Published:
6 September 2023
Abstract: Profitability is the basic aim of establishing a business, and banks are not exceptions. Thus, the main objective of the study is to examine the impact of bank regulations on the performance of commercial banks in Ethiopia. The panel data was collected from an audited financial statement of nine commercial banks for eleven consecutive years, 2011–2021. The study employed a quantitative research approach to documentary analysis. The study used a fixed effect model on the regression analysis and used E-View10 software. Return of Asset (ROA) was used as a dependent variable. While the statutory reserve requirements, legal reserve requirements, minimum capital requirement, credit risk, capital adequacy, and inflation as independent variables. The regression result revealed that legal reserve requirements, capital adequacy, and inflation had a positive and significant effect on the performance of selected commercial banks. Moreover, the statutory Reserve requirements were found to have a positive but insignificant impact on the bank's performance. On the other hand, minimum capital requirements and credit risk were found to have a negative and significant impact on the performance of selected commercial banks. The study recommended that the National Bank of Ethiopia (NBE) and other regulatory bodies follow and update reserve requirements, inflation, real GDP growth, capital requirements, and other regulations while considering the short and long-term The long-term impact of such policy changes on overall economic performance and commercial Banks in Ethiopia are also recommended to improve their capital growth and analyses the borrowers’ creditworthiness before lending out funds, and consider the deposit interest rate and sensitivity of customers to such change against inflation.
Abstract: Profitability is the basic aim of establishing a business, and banks are not exceptions. Thus, the main objective of the study is to examine the impact of bank regulations on the performance of commercial banks in Ethiopia. The panel data was collected from an audited financial statement of nine commercial banks for eleven consecutive years, 2011–2...
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Citizen-Centred Governance: What Role of Supreme Audit Institute (SAI) Nigeria
Issue:
Volume 9, Issue 4, August 2023
Pages:
68-72
Received:
14 December 2022
Accepted:
6 March 2023
Published:
18 September 2023
Abstract: There is a particular relevance in Citizen-centred governance for individuals and groups who lives in areas far from the Centre, and for those administrators and policy-makers committed to eliminating poverty, and also reducing social injustice and inequality. A lot of new policy initiatives have been targeted at these areas over the past decade. The wave for democratisation as Huntington puts has come with new ways for citizens’ engagement in the governance process towards shaping and deciding public policy, and also has created a complex governance landscape of statutory agencies, partnerships, boards, and other structures. One critical element for Citizen-centred administration and governance is making the correct regulation environment for a greater outcome. The overall outcome includes coordinating the administration’s way of handling issues towards creating a participatory and localised structure through which citizens are engaged to request superior outcomes from the government. Through such a regular course of action, it is observed, that the component and motivating forces fundamental to adopting results-oriented institutions for effectiveness is participatory governance. Therefore, it is within this background that the paper will explore the role of the Supreme Audit Institution (SAI) Nigeria in promoting Citizen-Centred Governance in Nigeria. The paper asks the critical question of how the Nigerian Supreme Audit Institute created and promote a participatory and localised structure through which citizens are engaged to request superior outcomes from the government.
Abstract: There is a particular relevance in Citizen-centred governance for individuals and groups who lives in areas far from the Centre, and for those administrators and policy-makers committed to eliminating poverty, and also reducing social injustice and inequality. A lot of new policy initiatives have been targeted at these areas over the past decade. T...
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