| dc.description.abstract |
Since achieving the ideal level of liquidity is one of the top issues for banks, it is essential. Finding
the factors that affect private commercial banks' liquidity in Ethiopia was the primary goal of this
study. Data was gathered from a sample of six private commercial banks in Ethiopia between the
years of 2012 and 2021 in order to meet the research objectives. Bank specific and macroeconomic
variables were analyzed by using the balanced panel fixed effect regression model. Bank’s
liquidity is measured in three ratios: liquid asset to deposit, liquid asset to total asset and loan to
deposit ratios. The findings of the study revealed that, bank size and loan growth has negative and
statistically significant impact on liquidity; while non-performing loans, profitability and inflation
have positive and statistically significant impact on liquidity of Ethiopian private commercial
banks. However, capital adequacy, interest rate margin, real GDP growth rate, interest rate on
loans and short-term interest rate have no statistically significant effect on the liquidly of
Ethiopian private commercial banks. |
en_US |
