Evaluating The Growth Of Ethiopian Private I Banks Using The Sustainable Growth Model

This paper exemplified the management of financial growth inrnEthiopian private banks in light of the sustainable growth mode/. Thernactual and sustainable growth rates for each of the banks arerncomputed. A three year combined financial statements are also usedrnto compute these rates. The results of the research confirmed that inrnnone of the periods the sustainable growth rate matched with thernactual growth rate.rnIn the study it is observed that private banking industry is a growingrnindustry which requires financing. However, as the results indicated,rnnone of the banks attempted to align these rates.rnTherefore, the researcher recommended that banks should use thisrnpowerful tool, the sustainable growth model, to manage their growth.rnFinally, it is recommended that banks have to improve both thernperformance and financial policy ratios to finance their increasingrngrowth. To attain these improvements, banks are recommended tornincrease volume of deposits, have a clearly defined dividend policy,rnincrease sales or diversify their products and improve their profitability.

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