Public Policy And The Banking System In Ethiopia Post 1991

The Ethiopian banking system undergone reforms after 1991 and severalrnmeasures have been taken. Despite these measures, the Ethiopian bankingrnsystems appears to have a structural problem. The banking system is highlyrndominated by public ownership. it is affected by weak credit culture and poor riskrnassessments. The foreign entry to the banking industry also hinders thernintroduction of new products and technology. Drawing documentary study andrndata from the primary sources, various issues of public policy that have impactrnon the banking system is assessed. Moreover, secondary data are utilized andrnexamined. Public policy has to play decisive role in crafting the rules of the gamernas appropriate to the temporal economic development commitments as well asrnmacroeconomic stability in a perquisite for smooth and effective leadership ofrnregulatory and a change management could be sought. To foster therndevelopment of the banking institution so as to play a vital role in the economy,rnthe participation of private sectors both domestic and foreign has to bernencouraged.

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