Determinants of commercial bank loan and advance disbursement: the case of private Ethiopian commercial banks

Birhanu, Tekeste; Deressa, Sewunet Bosho; Azadi, Hossein; Viira, Ants‐Hannes; Passel, Steven Van; Witlox, Frank

doi:10.1108/ijbm-05-2021-0166

Cited by 6 publications

(3 citation statements)

References 45 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Besides, studied commercial banks are operating in a poor competitive environment (Eshete et al. , 2013; Boru, 2014; Desta, 2016; Tewodros and Gedion, 2019; Birhanu et al. , 2021), which diminishes a bank manager's endeavor to maximize their bank's productivity (Phan et al.…”

Section: Resultsmentioning

confidence: 99%

“…Mester (1996) also stated that the cost incurred to establish the customer relationship reduces the productive efficiency level of DMUs. Besides, studied commercial (Eshete et al, 2013;Boru, 2014;Desta, 2016;Tewodros and Gedion, 2019;Birhanu et al, 2021), which diminishes a bank manager's endeavor to maximize their bank's productivity (Phan et al, 2016).…”

Section: Regressions Analysismentioning

confidence: 99%

See 1 more Smart Citation

Resource-based productivity in the closed banking sector: the case of Ethiopian banks

Tarekegn

Liu²,

Xiao³

2022

IJPPM

View full text Add to dashboard Cite

PurposeThe current paper's goal is to examine the productivity of the closed banking sector evidenced from Ethiopia. In addition, the inclusion of intangibles on productivity was examined in the current paper.Design/methodology/approachFirst, the standard Malmquist Productivity Index (MPI) was employed for 13 commercial banks for both stages. Second, by excluding the state-owned commercial bank, the analysis employed a bootstrapped MPI for the robust and comprehensive conclusion. Furthermore, from 2010 to 2019, the fixed effect Ordinary Least Square (OLS) regression with balanced panel data was used.FindingsThe standard MPI in both stages shows that the productivity of Ethiopian commercial banks is declining. The technological shock was the main reason for the loss. The catch-up in both stages scored above unity, mainly due to the pure efficiency change. Besides, when combined with tangible resources, the inclusion of resource-based view (RBV) proxy variables reduces technological shock regress and ultimately improves productivity change. The bootstrapped MPI also reveals that technological shock is the primary source of the productivity decline. However, efficiency change also contributes to the productivity decline based on this estimation.Research limitations/implicationsFuture research could examine the more extensive productivity analysis by considering the primary sources of data collections for resource-based variables.Practical implicationsAccording to the study's results, banking regulatory authorities and bank management, including the shareholders, should continue to invest in cutting-edge technology to improve the productivity of the banking sector.Originality/valueThis is the first comprehensive study of productivity for Ethiopian commercial banks based on the standard MPI, bootstrapped MPI, and OLS by incorporating all resources into the analysis.

show abstract

Section: Resultsmentioning

confidence: 99%

Section: Regressions Analysismentioning

confidence: 99%

Resource-based productivity in the closed banking sector: the case of Ethiopian banks

Tarekegn

Liu²,

Xiao³

2022

IJPPM

View full text Add to dashboard Cite

show abstract

“…The rate at which loans are created in an economy has a big impact on how productively a nation operates. Commercial banks' primary sources of revenue are advances and loan interest (Birhanu et al, 2021). Credit requirements for borrowers are a direct cause of banks' financial issues.…”

Section: Literature Reviewmentioning

confidence: 99%

The Effect of Credit Risk and Board Diversity on the Performance of Banks Listed on the Indonesian Stock Exchange

Suhardono,

Simamora,

Agung

et al. 2024

IJIBE

View full text Add to dashboard Cite

This research aims to analyze the influence of several factors on banking performance in Indonesia, with a focus on Return on Assets (ROA). The factors studied include the Capital Adequacy Ratio (CAR), Non-Performing Loans (NPL) ratio, Expected Credit Loss Provision (CKPN) ratio, Earning Ability (BOPO), Loan to Deposit Ratio (LDR), and Board Diversity (BD). Data was taken from banking companies listed on the Indonesia Stock Exchange in the period 2018 to 2022. The analysis method uses a linear regression test with a Fixed Effect Model. The research results show that the NPL ratio, CKPN ratio, BOPO, LDR, and BD have a significant influence on banking performance, while CAR does not have a significant influence. These results provide important information for investors and managers in managing banks, as well as being the basis for further research in identifying other factors that influence banking performance in Indonesia.�

show abstract

The green gift: Environmental credit rating policy and loan contract terms

Xu,

Tian

2025

Journal of Environmental Management

View full text Add to dashboard Cite

Determinants of commercial bank loan and advance disbursement: the case of private Ethiopian commercial banks

Cited by 6 publications

References 45 publications

Resource-based productivity in the closed banking sector: the case of Ethiopian banks

Resource-based productivity in the closed banking sector: the case of Ethiopian banks

The Effect of Credit Risk and Board Diversity on the Performance of Banks Listed on the Indonesian Stock Exchange

The green gift: Environmental credit rating policy and loan contract terms

Contact Info

Product

Resources

About