PERFORMANCE EVALUATION OF BANKING SECTOR AND ITS IMPACT ON SUSTAINABLE DEVELOPMENT OF ETHIOPIA ECONOMY

Abstract

The banking sector in Ethiopia has been playing a predominant role in the development of an economy. After 1990, many banks enter this sector for their existence and bringing a new dynamism for providing enormous services to vulnerable groups for expanding financial inclusion. The role of commercial banks is very important for increasing customer deposits, providing loans enhancement of trading activities (Berhane Ghebray, 2014). This study has focused on the present performance of both public and private banks through scientific tools such as ROA, ROE, LDR, CDR, CAR, IETTL and NIM for measuring their performance and to give appropriate suggestions for providing quality of services for sustainable development of an economy.