College of Bussines and Economics

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College of Bussines and Economics

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    DETERMINANTS OF PRIVATE COMMERCIAL BANKS PROFITABILITY IN ETHIOPIA
    (wolkite university, 2024-05-01) MOHAMMED SEFA
    This study investigates the determinants of bank profitability using a panel dataset comprising 150 observations across 15 banks. The primary objective is to identify significant factors influencing bank profitability and provide recommendations to enhance financial performance and sustainability. The methodology employed in this research involves fixed effects panel regression analysis to examine the relationship between various independent variables and bank profitability, measured by Return on Assets (ROA) and Return on Equity (ROE). The independent variables considered include Liquidity Position (LIQ), Deposit (DT), Capital Adequacy Ratio (CAP), Bank Size (BS), Reserve Requirement (RR), GDP Growth (GDP), and Inflation (INF). The results of the analysis reveal several significant determinants of bank profitability. Liquidity position, capital adequacy ratio, GDP growth, and inflation exhibit statistically significant associations with both ROA and ROE. Specifically, an increase in liquidity position, capital adequacy ratio, and GDP growth positively impacts bank profitability, while inflation exerts a negative influence. Furthermore, the analysis reveals that deposit levels and bank size do not exhibit statistically significant relationships with bank profitability, as indicated by both ROA and ROE. Additionally, reserve requirements show no significant association with bank profitability, suggesting that regulatory constraints may not be significant drivers of bank profitability in the context of this study. These results underscore the complex interplay of various factors affecting bank profitability and highlight the need for a comprehensive approach to financial management and risk mitigation in the banking sector. Based on the findings, several recommendations are proposed to enhance bank profitability and ensure financial stability. These include optimizing liquidity management, diversifying funding sources for enhancing efficiency and cost management, adapting regulatory changes, maintaining adequate capital buffers, monitoring economic conditions, implementing robust risk management practices, enhancing efficiency and cost management, adapting to regulatory changes, and investing in innovation and digitalization.
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    DETERMINANTS OF GROWTH AND SUSTAINABILITY OF SAVING AND CREDIT COOPERATIVE ORGANIZATIONS; EVIDENCE FROM BUTAJIRA TOW
    (WOLKITE UNIVERSITY, 2023-06) ABAYNEH TESHOME
    Savings and Credit Co-operative Societies (SACCOs) play an increasingly important role in the process of financial intermediation in the highly competitive financial market in Ethiopia.Growth of SACCOs is affected by several factors both internally and externally. The objective of this study was to identify the determinant of growth and sustainability of saving and credit cooperative organizations in Butajira Town. In this study both primary and secondary data has been used. The primary data were collected from a sample of 190 members of 18 saving and credit cooperative organizations found in Butajira town from the distributed 190 questioner 182 were the response rate and the analysis were carried out from these numbers. The study used both Descriptive and inferential statistics to do analysis, among the descriptive mean, standard deviation, and frequencies are the adopted whereas the inferential were correlation and multiple linear regressions, which were used the listed determinants of growth and sustainability of saving and credit cooperative organizations in butajira town. The study found that low level of Income, member participation and management skill while, technology ,political interference and growth and sustainability value was at medium levels, From the result the researcher sees that the major determinant of growth and sustainability was effect of technology, followed by management skill and political interference from internal and external parts. Therefore, SACCOS has needs to give high attention in attracting members who have great courage to adopt technology and having of enough capacity so as to facilitate the issue beside, The study recommends SACCOS better to hire train and educate their members and employees so as to make competent in managing