Portfolio Behavior Of Commercial Banks In Ethiopia

As a part o f financial intermediaries, commercial banks channel funds from thernsavers to borrowers in their profitability objective. Moreover, the monetaryrnpolicies of the central bank are undertaken by the direct availability of funds orrnvia in tersest rates for the banks.rnThe study examines how interest rates banks & deposit relate to the portfoliornchoice in the commercial banks. In examining these questions, annual data arerncollected for the different the assets & deposits of commercial banks andrninterest rates from National Bank of Ethiopia report . The relations among assetrnholdings, interest rates & bank deposits are examined based on correlation&rnregression methods.rnAs a result, the holdings of excess reserves, deposits in foreign banks , treasury billsrn,government bond and loans &advances in the portfolio found to be change inrndifferent degree with the change in the rates of ,deposit in to reign banks.rntreasury bills, government bonds& loans Moreover .assets holdings in the portfoliornconstrained by demand, saving & time deposits

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