Private Commercial Banks In Ethiopia

Course ID
Ethiopian Economics Association (EEA)
Muluneh Ayalew


In this paper the market structure of commercial banks in the economy is examined using the Herfindahl Index. The market is found highly concentrated especially in total assets and deposits towards public banks, especially the Commercial Bank of Ethiopia. The article has also tried to analyze cost efficiency of six private commercial banks operating in Ethiopia. The efficiency analysis is made using quarterly panel data from the first quarter of fiscal year 1997/98 to the second quarter of 2005/06 and employing the Stochastic Frontier Analysis. The cost efficiency result of the banks under review shows an improvement from time to time during the period. During the first two quarters of 2005/06 on average the banks were found producing for Birr 1.101 an output that can efficiently be produced for Birr 1.0. From the firm specific determinants of efficiency, size of banks (measured by total assets and branch network) and age are found negatively related while capital is found to positively affect efficiency of the banks

Corporate Author: Getnet Alemu and Getachew Yoseph (Editor) & Ethiopian Economic Association/Ethiopian Economic Policy Research Institute
Publisher: Ethiopian Economic Association (EEA)
ISBN/ISSN: 978-9994-54-03-7
Primary Descriptors:


Secondary Descriptor:

Finacial Instutute, Private

Geographic Descriptors: Ethiopia
Cataloge Date: 02/27/2013
Broad Subject heading: FINANCE
Call Number: 330.963 PRO 2007
Serial Key Title: Proceedings of the Fourth International Conference on the Ethiopian Economy
Publication catagory: International Conference
Content type: EEA Publication
Volume: I
Publication date: 2013-05-27 00:00:00
Forum or Discussion date: 2013-02-27 00:00:00
PDF file: Muluneh Ayalew_ Private commercial banks in Ethiopia.pdf
Place of publication: Addis Ababa, Ethiopia
Type of material: Book
Current frequency: Annualy
Author: Muluneh Ayalew