The Impact of National Bank supervision and Regulation on Banks Performance of Private Banks of Ethiopia.

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.