Impact Of Non-existence Of Financial Markets In Asset-liablity Mamagmenem Of Ethiopian Financial Institutions

The subject of asset-liability management received more attention in modemrnfinancial and risk management of the financial sector. in this project, attempt 1:5rnmade to show the Ethiopian private commercial banks asset-liability matchin£,rneffort. the research was mainly conducted through critical evaluation of the s1.rnselected commercial banks. alm models which are evolved through time and tool,rntheir current shape are used to determine the positions those banks. thernresearch tried to address the problem of absence of organized financial market ilrnthe II lc1llagelltent of assets and liabilities. the outcome of the research suggeste(,rnthat, most of the banks are not in ideal liquidity position. Either, they are skewedrnto the right or left of the perfect match. it had also been observed that, bank~,rneffol1 towarcis their f oreign currency position impaired by the rigid directives 0rnthe cell1rcil ballk. III line with this, potential solutions which were believed I(rnalleviate the problem were recommended. despite the above fact, bank were ablernto register remarlwble increase in the period of six years from 2002 to 2006. to bprnsucces sful, howe ver, they are expected to capitalize these phenomena foirnmaximum possible benefits.

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