Performance Evaluation of Public Banks in Ethiopia - Pre- vs. Post-Reform Period

Abstract

The present paper uses secondary sources to gather relevant data and the annual reports of respective banks and National bank of Ethiopia are the main sources for this study. The study aims to evaluate the impact of financial liberalization on the performance of banks in Ethiopia. The study period covers 12 years from 1985/6 to 1996/7. Except for time deposits, it was found that there is statistically significant difference on the public banks average performances of demand deposits, saving deposits, total deposits, loans and advance and outstanding credits between the pre and post financial reform periods. Therefore, it can be concluded that financial liberalization has brought significant change on the performance of public banks, except for time deposits.

Keywords: Banking in Ethiopia, Banking performance in Ethiopia, Reform in Ethiopian banking