Financing Pattern of the Development Bank of Ethiopia (DBE)

Ismael Hussein Malela

doi:doi:10.11648/j.ijfbr.20220801.11

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Financing Pattern of the Development Bank of Ethiopia (DBE)

Ismael Hussein Malela

Published in International Journal of Finance and Banking Research (Volume 8, Issue 1)

Received: 16 December 2021 Accepted: 7 January 2022 Published: 17 January 2022

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Abstract

This study model over view the financing pattern of the Development Bank of Ethiopia ((DBE), Documentary evidence, annual reports, and accounts form the data basis of this paper. A Simple Multiple Regression Model was developed incorporating two independent variables (liquidity and shareholders fund) and one major dependent factor (loans and advances), representing the bank's financing pattern. The model was used to examine the extent to which these predictor variables explain the bank's loan and advances during the period 2006-2013. The regression results reveal that liquidity is an important factor in explaining the financing pattern of DBE in Ethiopia. However, a contrary impact has been documented concerning shareholders' funds. Based on the evident result from hypothesis one which says Liquidity does not have significant predictive power over DBE loans and advances can be conceived that the amount of loan and advances to be dished out in form of equity or credit financing by BOI is dependent solely on the availability of liquidity. The paper recommends the need for BOI and other DBE to maintain constant liquidity planning to keep abreast of societal credit needs in the form of loans and advances. In addition, the study further recommends the need for the bank to continually reduce the allocated amounts to shareholder's funds in the form of reserves to enable it to improve on developmental activities.

Published in	International Journal of Finance and Banking Research (Volume 8, Issue 1)
DOI	10.11648/j.ijfbr.20220801.11
Page(s)	1-5
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2022. Published by Science Publishing Group

Keywords

Finance, Development Bank, Capital Structure, Liquidity, DBE of Ethiopia

References

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APA Style

Ismael Hussein Malela. (2022). Financing Pattern of the Development Bank of Ethiopia (DBE). International Journal of Finance and Banking Research, 8(1), 1-5. https://doi.org/10.11648/j.ijfbr.20220801.11

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Ismael Hussein Malela. Financing Pattern of the Development Bank of Ethiopia (DBE). Int. J. Finance Bank. Res. 2022, 8(1), 1-5. doi: 10.11648/j.ijfbr.20220801.11

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Ismael Hussein Malela. Financing Pattern of the Development Bank of Ethiopia (DBE). Int J Finance Bank Res. 2022;8(1):1-5. doi: 10.11648/j.ijfbr.20220801.11

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@article{10.11648/j.ijfbr.20220801.11,
  author = {Ismael Hussein Malela},
  title = {Financing Pattern of the Development Bank of Ethiopia (DBE)},
  journal = {International Journal of Finance and Banking Research},
  volume = {8},
  number = {1},
  pages = {1-5},
  doi = {10.11648/j.ijfbr.20220801.11},
  url = {https://doi.org/10.11648/j.ijfbr.20220801.11},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijfbr.20220801.11},
  abstract = {This study model over view the financing pattern of the Development Bank of Ethiopia ((DBE), Documentary evidence, annual reports, and accounts form the data basis of this paper. A Simple Multiple Regression Model was developed incorporating two independent variables (liquidity and shareholders fund) and one major dependent factor (loans and advances), representing the bank's financing pattern. The model was used to examine the extent to which these predictor variables explain the bank's loan and advances during the period 2006-2013. The regression results reveal that liquidity is an important factor in explaining the financing pattern of DBE in Ethiopia. However, a contrary impact has been documented concerning shareholders' funds. Based on the evident result from hypothesis one which says Liquidity does not have significant predictive power over DBE loans and advances can be conceived that the amount of loan and advances to be dished out in form of equity or credit financing by BOI is dependent solely on the availability of liquidity. The paper recommends the need for BOI and other DBE to maintain constant liquidity planning to keep abreast of societal credit needs in the form of loans and advances. In addition, the study further recommends the need for the bank to continually reduce the allocated amounts to shareholder's funds in the form of reserves to enable it to improve on developmental activities.},
 year = {2022}
}

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TY  - JOUR
T1  - Financing Pattern of the Development Bank of Ethiopia (DBE)
AU  - Ismael Hussein Malela
Y1  - 2022/01/17
PY  - 2022
N1  - https://doi.org/10.11648/j.ijfbr.20220801.11
DO  - 10.11648/j.ijfbr.20220801.11
T2  - International Journal of Finance and Banking Research
JF  - International Journal of Finance and Banking Research
JO  - International Journal of Finance and Banking Research
SP  - 1
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PB  - Science Publishing Group
SN  - 2472-2278
UR  - https://doi.org/10.11648/j.ijfbr.20220801.11
AB  - This study model over view the financing pattern of the Development Bank of Ethiopia ((DBE), Documentary evidence, annual reports, and accounts form the data basis of this paper. A Simple Multiple Regression Model was developed incorporating two independent variables (liquidity and shareholders fund) and one major dependent factor (loans and advances), representing the bank's financing pattern. The model was used to examine the extent to which these predictor variables explain the bank's loan and advances during the period 2006-2013. The regression results reveal that liquidity is an important factor in explaining the financing pattern of DBE in Ethiopia. However, a contrary impact has been documented concerning shareholders' funds. Based on the evident result from hypothesis one which says Liquidity does not have significant predictive power over DBE loans and advances can be conceived that the amount of loan and advances to be dished out in form of equity or credit financing by BOI is dependent solely on the availability of liquidity. The paper recommends the need for BOI and other DBE to maintain constant liquidity planning to keep abreast of societal credit needs in the form of loans and advances. In addition, the study further recommends the need for the bank to continually reduce the allocated amounts to shareholder's funds in the form of reserves to enable it to improve on developmental activities.
VL  - 8
IS  - 1
ER  -

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Author Information

Ismael Hussein Malela

Department of Accounting and Finance, College of Business and Economics, Oda Bultum University, Chiro, Ethiopia

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APA Style

Ismael Hussein Malela. (2022). Financing Pattern of the Development Bank of Ethiopia (DBE). International Journal of Finance and Banking Research, 8(1), 1-5. https://doi.org/10.11648/j.ijfbr.20220801.11

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ACS Style

Ismael Hussein Malela. Financing Pattern of the Development Bank of Ethiopia (DBE). Int. J. Finance Bank. Res. 2022, 8(1), 1-5. doi: 10.11648/j.ijfbr.20220801.11

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AMA Style

Ismael Hussein Malela. Financing Pattern of the Development Bank of Ethiopia (DBE). Int J Finance Bank Res. 2022;8(1):1-5. doi: 10.11648/j.ijfbr.20220801.11

Copy | Download

@article{10.11648/j.ijfbr.20220801.11,
  author = {Ismael Hussein Malela},
  title = {Financing Pattern of the Development Bank of Ethiopia (DBE)},
  journal = {International Journal of Finance and Banking Research},
  volume = {8},
  number = {1},
  pages = {1-5},
  doi = {10.11648/j.ijfbr.20220801.11},
  url = {https://doi.org/10.11648/j.ijfbr.20220801.11},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijfbr.20220801.11},
  abstract = {This study model over view the financing pattern of the Development Bank of Ethiopia ((DBE), Documentary evidence, annual reports, and accounts form the data basis of this paper. A Simple Multiple Regression Model was developed incorporating two independent variables (liquidity and shareholders fund) and one major dependent factor (loans and advances), representing the bank's financing pattern. The model was used to examine the extent to which these predictor variables explain the bank's loan and advances during the period 2006-2013. The regression results reveal that liquidity is an important factor in explaining the financing pattern of DBE in Ethiopia. However, a contrary impact has been documented concerning shareholders' funds. Based on the evident result from hypothesis one which says Liquidity does not have significant predictive power over DBE loans and advances can be conceived that the amount of loan and advances to be dished out in form of equity or credit financing by BOI is dependent solely on the availability of liquidity. The paper recommends the need for BOI and other DBE to maintain constant liquidity planning to keep abreast of societal credit needs in the form of loans and advances. In addition, the study further recommends the need for the bank to continually reduce the allocated amounts to shareholder's funds in the form of reserves to enable it to improve on developmental activities.},
 year = {2022}
}

Copy | Download

TY  - JOUR
T1  - Financing Pattern of the Development Bank of Ethiopia (DBE)
AU  - Ismael Hussein Malela
Y1  - 2022/01/17
PY  - 2022
N1  - https://doi.org/10.11648/j.ijfbr.20220801.11
DO  - 10.11648/j.ijfbr.20220801.11
T2  - International Journal of Finance and Banking Research
JF  - International Journal of Finance and Banking Research
JO  - International Journal of Finance and Banking Research
SP  - 1
EP  - 5
PB  - Science Publishing Group
SN  - 2472-2278
UR  - https://doi.org/10.11648/j.ijfbr.20220801.11
AB  - This study model over view the financing pattern of the Development Bank of Ethiopia ((DBE), Documentary evidence, annual reports, and accounts form the data basis of this paper. A Simple Multiple Regression Model was developed incorporating two independent variables (liquidity and shareholders fund) and one major dependent factor (loans and advances), representing the bank's financing pattern. The model was used to examine the extent to which these predictor variables explain the bank's loan and advances during the period 2006-2013. The regression results reveal that liquidity is an important factor in explaining the financing pattern of DBE in Ethiopia. However, a contrary impact has been documented concerning shareholders' funds. Based on the evident result from hypothesis one which says Liquidity does not have significant predictive power over DBE loans and advances can be conceived that the amount of loan and advances to be dished out in form of equity or credit financing by BOI is dependent solely on the availability of liquidity. The paper recommends the need for BOI and other DBE to maintain constant liquidity planning to keep abreast of societal credit needs in the form of loans and advances. In addition, the study further recommends the need for the bank to continually reduce the allocated amounts to shareholder's funds in the form of reserves to enable it to improve on developmental activities.
VL  - 8
IS  - 1
ER  -

Copy | Download