THE IMPACT OF LOAN PORTIFOLIO QUALITY ON THE PERFORMANCE 0F COMMERIAL BANK IN ETHIOPIA

Abstract

The study attempted be to investigate the impact of loan portfolio quality on the performance of commercial banks in Ethiopian using secondary data. The data were obtained from the annual reports of ten commercial banks for the period of 2009 to 2018. The study used return on assets as dependent variable. Moreover, the study used assets size as measure by logarithm of total Assets, capital adequacy, leverage, asset quality measure by non performing loan ratio, and liquidity ratio as bank specific variables. Besides, the study used gross domestic product and inflation rate as external variables. panel data regulation model will use to analyze the relationships of a dependent variable with explanatory variables.