Assessing The Implications Of Regulatory Policy On The Development Of Private Commercial Banks In Ethiopia A Case Of Nbe Bills Purchase Directive.

This paper assesses the implications of regulatory policy namely, NBE billsrnpurchase directive, on the development of private commercial banks in Ethiopia.rnMixed research approaches and descriptive research type were employed.rnAccordingly, research questions were approached via research tools likernquestionnaires, key informant interview and document surveying and analyzedrnusing simple descriptive statistics like ratio, percentage and average. The findingsrnof the research shows that NBE bills purchase directive have negative implicationsrnon loanable fund, income and expense, profit, Capital and reserve, and deposit ofrnprivate commercial banks, whereas positive implications on branch expansion andrnproduct development of private commercial banks. According to the finding, therndirective affected the loanable fund, income, profit, reserve, and deposit ofrnprivate commercial banks via reducing them. The implication of the directivernimplied on expense of private banks via increasing overall expenses. Thus, thernNBE bills purchase directive has negative impact on almost all performances ofrnprivate commercial banks, which further has negative implications on therndevelopment of private commercial banks. Finally, respondents forwardedrnrecommendations like lessening the percentage amount of allotment, increasingrninterest rate paid for the bills and phasing out the directive

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