Wolaita Sodo Unversity College of Business and Economics Department of Accounting and Finance

WOLAITA SODO UNVERSITY COLLEGE OF BUSINESS
AND ECONOMICS DEPARTMENT OF ACCOUNTING

AND FINANCE
Development of Financial Sector in Ethiopia
Faculty of Business and Economics,

Department of Accounting and Finance,
Wolaita Sodo University, Ethiopia.
Submitted to Nestanet B ASS.PRO)
Wolaita Sodo University, Ethiopia.

Journal :- Journal of Economics and Sustainable
Development
Article title Development of Financial Sector in Ethiopia:
Author: Deraw Gashayie1* Dr Manjit Singh2 1. PhD Research Fellow,
School of Applied Management Studies, Punjabi University, Patiala, India
2. Professor of Accounting and Finance, School of Applied Management
Studies, Punjabi University, Patiala, India
Reviwer
Publication information :- ISSN 2222-1700 (Paper) ISSN 2222-2855 (Online) Vol.7,
No.7, 2016
Abstract
This article presents comprehensive review of annual reports and articles on
development of financial sector in Ethiopia and for open discussion.
Summary of article
The chapter is organized as follows: Section 2 focuses on
Background and Structure of the Financial Sector in Ethiopia,
section 3 focuses on Rural Financial systems in Ethiopia and
provides a review of the formal rural financial system as well as
informal rural financial systems in Ethiopia. Section 4 discusses
Financial Developments in Ethiopia; Section 5 discusses Major
Financial Product Services in Ethiopia; the gap between credit
supply and credit demand in rural Ethiopia is discussed in
Section 6; Section 7 discusses the Legal and Policy Environment
in financial sector; and Section 8 discusses the Role of the
Government in the Financial Sector.
Introduction
This article provides an overview of development of
financial sector in Ethiopia, including Background and
Structure of the Financial Sector in Ethiopia, Rural
Financial systems in Ethiopia, Financial Developments
in Ethiopia, Major Financial Product Services,
Supplies-Demand Gaps in the Financial Sector, The
Legal and Policy Environment and The Role of the
Government in the Financial Sector.
objective:
To provides an overview of development of financial sector in
Ethiopia
To develop Financial Product Services, Supplies-Demand Gaps in
the Financial Sector,
 to explain the Legal and Policy Environment in financial sector; and
Section
Specific objectives :-
 To explain development of financial sector in Ethiopia
•To develop Financial Product Services, Supplies-Demand Gaps in the
Financial Sector,
STATEMENT PROBLEM
Financial development in Ethiopia is generally low. The degree of
monetization is obviously low in a country where the economy itself is
dominated by a subsistent oriented agriculture. Broad money as a
proportion of the GDP, which is broadly taken as a measure of the
extent of financial development, is in the range of 24% to 28%. While
this statistic is comparable to many low-income African countries
Theoretical Views:- development of financial sector in Ethiopia

and for open discussion.
Research Methodology:-
The development of financial sector in Ethiopia are open discussion
include regulating the activities of banks, board directors, and
managers, controlling foreign ownership of bank, controlling
concentration of credit, credit and interest rate control, capital
requirement, limiting board directors and manger benefit .
Research Design
Research assessing the impact of development of financial sector in Ethiopia and
for open discussion.
Strength of article:-
Experience listed from Ethiopia context

 Better and poor performance of the financial regulation and regulation identified. .
weak side
- full information not contributed - .
-NO Hypothesis
-Shortage of related literature in Ethiopian context
Conclusion
Banking in Ethiopia started in 1905, with the establishment of the Bank of Abyssinia
that was owned by the Ethiopian government in partnership with the National Bank
of Egypt then under British rule. But a well structure banking system started to
evolve starting the 1940s-after the Italian departure. A government owned bank-the
State Bank of Ethiopia-was established in 1942, and a number of foreign bank
branches and a private bank were operating in competition with the government
owned commercial bank until they were nationalized and merged into one
government owned mono-bank in 1976..
Recommendation:-
responsible for monitoring the financial condition and regulatory compliance of
state members. The competitive banking situation that started to flourish during the
1960s and 1974s was nipped in the bud by the command system that reign over the
1974-1991 periods
.
THE END
THANKS

Wolaita Sodo Unversity College of Business and Economics Department of Accounting and Finance

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WOLAITA SODO UNVERSITY COLLEGE OF BUSINESS

AND ECONOMICS DEPARTMENT OF ACCOUNTING

Faculty of Business and Economics,

Submitted to Nestanet B ASS.PRO)

Wolaita Sodo University, Ethiopia.

Theoretical Views:- development of financial sector in Ethiopia

Experience listed from Ethiopia context

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