出版社：“Victor Slăvescu‿Centre for Financial and Monetary Research
摘要：Efficient and effective performance of banking industry over
time is an index of financial stability in any nation. Risk management is
a key issue to sustain the financial stability. The presence of different
risks in financial industry appeals for effective risk management
procedures. As a result, this study examined the effect of risk
management on financial performance of 17 Ethiopian Commercial
Banks. Quantitative research approach was applied using secondary
data for the sample period covered from 2013 to 2017. The collected
data was analyzed by using panel random effect regression model.
The result of the study shows that credit risk, liquidity risk, operating
risk and market risks have significant negative impact on financial
performance of commercial banks in Ethiopia. Whereas, bank size as
control variable has positive impact on financial performance of
commercial banks. The study concludes that credit, liquidity, operation
and market risks have significant effects on financial performance of
commercial banks in Ethiopia. The study suggests that commercial
banks in Ethiopia should manage their loan portfolio and hedge their
business risks in the market so as to sustain their financial
performance.
