Browsing by Author "MESFIN MATHEWOS"

Filter results by typing the first few letters
Now showing 1 - 1 of 1
  • No Thumbnail Available
    Item
    DETERMINANTS OF LIQUIDITY: THE CASE OF SELECTED PRIVATE COMMERCIAL BANKS IN ETHIOPIA
    (HAWASSA UNIVERSITY, 2025-05) MESFIN MATHEWOS
    Liquidity management stands as a cornerstone of financial stability within banking institutions. This study investigates the primary factors influencing liquidity in selected private commercial banks operating in Ethiopia. With the rapid expansion of the country’s banking sector and intensifying competition among financial institutions, understanding the internal and external determinants of bank liquidity has become crucial. This study investigates the key determinants influencing liquidity in selected private commercial banks operating in Ethiopia between 2008 and 2023. Quantitative research approach and explanatory Research design were adopted in carrying out this research. Secondary data were collected from the selected seven commercial banks using purposive sampling technique and macro-economic data are collected from Ministry of Finance and Economic Development (MOFED). The study used both descriptive and inferential statistics. Mean and standard deviation were used as descriptive statistics, whereas correlation and panel regressions were used from inferential statistics using Eviews-9. The study focuses on variables such as capital adequacy, asset quality, loan growth, bank size, and non performing loans, alongside broader economic indicators like inflation, GDP growth, interest rate spreads, and exchange rate volatility. The findings of the study show that Capital Adequacy, Bank Size, GDP Growth, Inflation Rate, and Interest Rate Spread are significant determinants of bank liquidity, while increased non-performing loans and macroeconomic instability negatively impact liquidity levels. The research provides evidence-based insights for bank managers, regulators, and policymakers aiming to improve liquidity management practices and safeguard the resilience of Ethiopia’s banking sector. By highlighting the interconnectedness of internal governance and external economic forces, this study contributes to a deeper understanding of liquidity dynamics in emerging financial market