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What is Credit Risk and Profitability in Ethiopian Banks about?
This thesis examines the impact of credit risk on the profitability of private commercial banks in Ethiopia, utilizing a quantitative approach with secondary data from ten banks over eleven years. The study finds that non-performing loans, net interest margin, loan to deposit ratio, and loan loss provisions significantly affect profitability, while the capital adequacy ratio does not. The research highlights the importance of effective credit risk management in maintaining bank profitability and stability.
- Author
- melsewalayu
- Language
- EN