Thesis Open Access

A thesis submitted to Addis Ababa University, College of Business and Economics, Department of Management in partial fulfillment of the requirements for the degree in Executive Masters of Business Administration

Sintayhu Sibehate

Financial Development is a cornerstone for economic growth and development. Banks in developing countries like Ethiopia play dominant role in the financial sector through playing intermediation function. Hence, increasing credit supply while also ensuring the soundness of the finical sector is key for accelerating economic activity. However, like in most African countries, bank credit in Ethiopia is low though credit to GDP is growing steadily overtime. Hence, this research investigates credit drivers of Ethiopian commercial banking sector during the period from 2002 to 2014. It was conducted based on the hypothesis that credit in Ethiopian banking industry is determined by bank, industry and macro-economic specific factors. Several theories and empirical outcomes were examined to explain the determinants of bank credit supply. The variables were selected based on both theoretical and empirical literatures

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