Profitability is the basic aim of establishing a business, and banks are not exceptions. Thus, th... more Profitability is the basic aim of establishing a business, and banks are not exceptions. Thus, the main objective of the study is to examine the impact of bank regulations on the performance of commercial banks in Ethiopia. The panel data was collected from an audited financial statement of nine commercial banks for eleven consecutive years, 2011-2021. The study employed a quantitative research approach to documentary analysis. The study used a fixed effect model on the regression analysis and used E-View10 software. Return of Asset (ROA) was used as a dependent variable. While the statutory reserve requirements, legal reserve requirements, minimum capital requirement, credit risk, capital adequacy, and inflation as independent variables. The regression result revealed that legal reserve requirements, capital adequacy, and inflation had a positive and significant effect on the performance of selected commercial banks. Moreover, the statutory Reserve requirements were found to have a positive but insignificant impact on the bank's performance. On the other hand, minimum capital requirements and credit risk were found to have a negative and significant impact on the performance of selected commercial banks. The study recommended that the National Bank of Ethiopia (NBE) and other regulatory bodies follow and update reserve requirements, inflation, real GDP growth, capital requirements, and other regulations while considering the short and long-term The long-term impact of such policy changes on overall economic performance and commercial Banks in Ethiopia are also recommended to improve their capital growth and analyses the borrowers' creditworthiness before lending out funds, and consider the deposit interest rate and sensitivity of customers to such change against inflation.
International Journal of Finance and Banking Research. , 2023
Profitability is the basic aim of establishing a business, and banks are not exceptions. Thus, th... more Profitability is the basic aim of establishing a business, and banks are not exceptions. Thus, the main objective of the study is to examine the impact of bank regulations on the performance of commercial banks in Ethiopia. The panel data was collected from an audited financial statement of nine commercial banks for eleven consecutive years, 2011-2021. The study employed a quantitative research approach to documentary analysis. The study used a fixed effect model on the regression analysis and used E-View10 software. Return of Asset (ROA) was used as a dependent variable. While the statutory reserve requirements, legal reserve requirements, minimum capital requirement, credit risk, capital adequacy, and inflation as independent variables. The regression result revealed that legal reserve requirements, capital adequacy, and inflation had a positive and significant effect on the performance of selected commercial banks. Moreover, the statutory Reserve requirements were found to have a positive but insignificant impact on the bank's performance. On the other hand, minimum capital requirements and credit risk were found to have a negative and significant impact on the performance of selected commercial banks. The study recommended that the National Bank of Ethiopia (NBE) and other regulatory bodies follow and update reserve requirements, inflation, real GDP growth, capital requirements, and other regulations while considering the short and long-term The long-term impact of such policy changes on overall economic performance and commercial Banks in Ethiopia are also recommended to improve their capital growth and analyses the borrowers' creditworthiness before lending out funds, and consider the deposit interest rate and sensitivity of customers to such change against inflation.
This research aims to map research related to the zakat core principle that has been published in... more This research aims to map research related to the zakat core principle that has been published in journals indexed in Dimensions from 2016 to 2023. The method used in this study is a qualitative approach with the support of NVivo software. The results of this study reveal that cluster analysis also explains research lines that include aspects such as zakat management, zakat technology, and zakat governance. These findings provide in-depth insight into the various perspectives and issues that exist in the zakat core principle literature. The implication of this research is that zakat management, the application of technology in zakat management, and effective governance in zakat institutions have a crucial role in implementing the core principles of zakat. These results can be a basis for better understanding the complexity of zakat core principles and contribute to improving zakat management practices by considering various relevant perspectives and aspects.
International Journal of Finance and Banking Research
This study was primarily conducted to investigate influencing factors for insurance companies spe... more This study was primarily conducted to investigate influencing factors for insurance companies specifically for private insurance operating in Ethiopia. To attain the objective both industry-specific and macroeconomic factors include the ratio of liquidity, leverage, the volume of capital, age of the insurance, underwriting risk, premium growth, market share, inflation, and economic growth. The study included ten insurance companies with operations from 2011 to 2020. Secondary data was collected from the Ethiopian central bank (National Bank of Ethiopia). An explanatory research design with a mixed approach was used for this study. Furthermore, this study employed OLS to estimate a multiple regression model constructed through E-views 10 software after all the necessary diagnostic tests were undertaken. The finding indicates liquidity, firm premium growth, the age of the company, and market share have significant positive effects on insurance profitability. Whereas, underwriting risk, leverage, the volume of capital, and inflation reveal significant but adverse effects on insurance profitability. The study suggests insurances companies adopt different techniques such as improving loss handling mechanisms, assessing and gathering adequate information about the insured before selection, and marketing managers should pay a great deal of attention to maximizing market share through the use of user-friendly information technology for both the insurance and it is customers.
The purpose of this research is to examine major causes of deposit growth in commercial banks in ... more The purpose of this research is to examine major causes of deposit growth in commercial banks in Ethiopia with explicit inference on industry specific and MacroEconomic variables. The research used secondary data from 2010-2019. Macroeconomic factors selected under this study consist of age dependency ratio, unemployment rate, population growth, broad money supply, and Inflation. While bank-specific variables included are branch expansion and bank size. Since the study employed panel data in line with the nature and data of the study ordinary least square method estimation were used subsequently after the necessary diagnostic tests and Hausman test performed to determine the appropriateness of fixed effect. The result of the study indicate branch macroeconomic factors such as bank size, broad money supply, and inflation significant positive effect on deposit growth of commercial banks. Contrarily, Age dependency ratio and population growth have a statistically significant negative effect on deposit growth. The unemployment rate, on the other hand, has been found to have a positive but statistically insignificant relationship. The bank-specific factors indicate the branch expansion has a positive significant association while Bank size has a positive but insignificant relationship with deposit growth of commercial banks. Finally, the study suggests there should be a stable macroeconomic environment that reduces the effect of inflation, money supply, population growth, and from a bank-specific perspective aggressive branch expansion is essential for the growth of deposits in commercial banks in Ethiopia.
Profitability is the basic aim of establishing a business, and banks are not exceptions. Thus, th... more Profitability is the basic aim of establishing a business, and banks are not exceptions. Thus, the main objective of the study is to examine the impact of bank regulations on the performance of commercial banks in Ethiopia. The panel data was collected from an audited financial statement of nine commercial banks for eleven consecutive years, 2011-2021. The study employed a quantitative research approach to documentary analysis. The study used a fixed effect model on the regression analysis and used E-View10 software. Return of Asset (ROA) was used as a dependent variable. While the statutory reserve requirements, legal reserve requirements, minimum capital requirement, credit risk, capital adequacy, and inflation as independent variables. The regression result revealed that legal reserve requirements, capital adequacy, and inflation had a positive and significant effect on the performance of selected commercial banks. Moreover, the statutory Reserve requirements were found to have a positive but insignificant impact on the bank's performance. On the other hand, minimum capital requirements and credit risk were found to have a negative and significant impact on the performance of selected commercial banks. The study recommended that the National Bank of Ethiopia (NBE) and other regulatory bodies follow and update reserve requirements, inflation, real GDP growth, capital requirements, and other regulations while considering the short and long-term The long-term impact of such policy changes on overall economic performance and commercial Banks in Ethiopia are also recommended to improve their capital growth and analyses the borrowers' creditworthiness before lending out funds, and consider the deposit interest rate and sensitivity of customers to such change against inflation.
International Journal of Finance and Banking Research. , 2023
Profitability is the basic aim of establishing a business, and banks are not exceptions. Thus, th... more Profitability is the basic aim of establishing a business, and banks are not exceptions. Thus, the main objective of the study is to examine the impact of bank regulations on the performance of commercial banks in Ethiopia. The panel data was collected from an audited financial statement of nine commercial banks for eleven consecutive years, 2011-2021. The study employed a quantitative research approach to documentary analysis. The study used a fixed effect model on the regression analysis and used E-View10 software. Return of Asset (ROA) was used as a dependent variable. While the statutory reserve requirements, legal reserve requirements, minimum capital requirement, credit risk, capital adequacy, and inflation as independent variables. The regression result revealed that legal reserve requirements, capital adequacy, and inflation had a positive and significant effect on the performance of selected commercial banks. Moreover, the statutory Reserve requirements were found to have a positive but insignificant impact on the bank's performance. On the other hand, minimum capital requirements and credit risk were found to have a negative and significant impact on the performance of selected commercial banks. The study recommended that the National Bank of Ethiopia (NBE) and other regulatory bodies follow and update reserve requirements, inflation, real GDP growth, capital requirements, and other regulations while considering the short and long-term The long-term impact of such policy changes on overall economic performance and commercial Banks in Ethiopia are also recommended to improve their capital growth and analyses the borrowers' creditworthiness before lending out funds, and consider the deposit interest rate and sensitivity of customers to such change against inflation.
This research aims to map research related to the zakat core principle that has been published in... more This research aims to map research related to the zakat core principle that has been published in journals indexed in Dimensions from 2016 to 2023. The method used in this study is a qualitative approach with the support of NVivo software. The results of this study reveal that cluster analysis also explains research lines that include aspects such as zakat management, zakat technology, and zakat governance. These findings provide in-depth insight into the various perspectives and issues that exist in the zakat core principle literature. The implication of this research is that zakat management, the application of technology in zakat management, and effective governance in zakat institutions have a crucial role in implementing the core principles of zakat. These results can be a basis for better understanding the complexity of zakat core principles and contribute to improving zakat management practices by considering various relevant perspectives and aspects.
International Journal of Finance and Banking Research
This study was primarily conducted to investigate influencing factors for insurance companies spe... more This study was primarily conducted to investigate influencing factors for insurance companies specifically for private insurance operating in Ethiopia. To attain the objective both industry-specific and macroeconomic factors include the ratio of liquidity, leverage, the volume of capital, age of the insurance, underwriting risk, premium growth, market share, inflation, and economic growth. The study included ten insurance companies with operations from 2011 to 2020. Secondary data was collected from the Ethiopian central bank (National Bank of Ethiopia). An explanatory research design with a mixed approach was used for this study. Furthermore, this study employed OLS to estimate a multiple regression model constructed through E-views 10 software after all the necessary diagnostic tests were undertaken. The finding indicates liquidity, firm premium growth, the age of the company, and market share have significant positive effects on insurance profitability. Whereas, underwriting risk, leverage, the volume of capital, and inflation reveal significant but adverse effects on insurance profitability. The study suggests insurances companies adopt different techniques such as improving loss handling mechanisms, assessing and gathering adequate information about the insured before selection, and marketing managers should pay a great deal of attention to maximizing market share through the use of user-friendly information technology for both the insurance and it is customers.
The purpose of this research is to examine major causes of deposit growth in commercial banks in ... more The purpose of this research is to examine major causes of deposit growth in commercial banks in Ethiopia with explicit inference on industry specific and MacroEconomic variables. The research used secondary data from 2010-2019. Macroeconomic factors selected under this study consist of age dependency ratio, unemployment rate, population growth, broad money supply, and Inflation. While bank-specific variables included are branch expansion and bank size. Since the study employed panel data in line with the nature and data of the study ordinary least square method estimation were used subsequently after the necessary diagnostic tests and Hausman test performed to determine the appropriateness of fixed effect. The result of the study indicate branch macroeconomic factors such as bank size, broad money supply, and inflation significant positive effect on deposit growth of commercial banks. Contrarily, Age dependency ratio and population growth have a statistically significant negative effect on deposit growth. The unemployment rate, on the other hand, has been found to have a positive but statistically insignificant relationship. The bank-specific factors indicate the branch expansion has a positive significant association while Bank size has a positive but insignificant relationship with deposit growth of commercial banks. Finally, the study suggests there should be a stable macroeconomic environment that reduces the effect of inflation, money supply, population growth, and from a bank-specific perspective aggressive branch expansion is essential for the growth of deposits in commercial banks in Ethiopia.
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