Abstract:
This thesis assesses the impact of Banking Regulation on the Performance of Private Banks.
Quantitative Analysis was used to confirm the opinions obtained using their financial statements
and ratios using a panel data for nineteen years. The "Reserve Requirement” directives are said
to support the profitability of banks, while the " The panel data econometric model implies that
the "Reserve Requirement, , and Credit cap negatively affected performance and management
efficiency ,capital adequacy and asset quality had a positive but weak impact on ROA and NIM
by have a statistically significant effect . In general the banker’s general opinion was skewed
towards a negative attitude and the Banking industry is found to be highly regulated and some
regulations are having negative impact on the performance of private banks. NBE should
therefore revise some of the directives and shall focus on strengthening the private banks.
