Comparative Analysis of Financial Performance of Public and Private Banks(Case Study)

15686 Words Jul 11th, 2012 63 Pages
COMPARATIVE ANALYSIS OF FINANCIAL PERFORMANCE OF PUBLIC AND PRIVATE BANKS [IN THE CASE OF SELECTED PRIVATE AND PUBLIC BANKS]

A SENIOR ESSAY SUBMITTED TO DEPARTMENT OF ACCOUNTING AND FINANCE, IN PARTIAL FULFILLMENT OF THE REQUIREMENT OF BACHELOR OF ARTS DEGREE IN ACCOUNTING AND FINANCE.

Prepared by: Ruth Alemayehu

ADDIS ABABA UNIVERSITY
COLLEGE OF MANAGEMENT, INFORMATICS AND ECONOMIC SCIENCE
SCHOOL OF BUSINESS AND PUBLIC ADMINSTRATION
DEPARTMENT OF ACCOUNTING AND FINANCE JUNE, 2011
ACKNOWLEGMENT
First of all I would like to thank the almighty God for HIS help in every aspect of my life. Without his help I would not be here.
I would like to forward my deepest gratitude to my advisor ATO Abraham
…show more content…
Therefore CBE stands to be the merger of several banks. By virtue of that it is the biggest bank of Ethiopia that was handling the entire commercial banking sector as a monopoly bank. CBE now operates through 168 branches all over Ethiopia, including one branch in Djibouti with a total asset about 3.5-4 billion, to become a world class commercial bank by the year 2025. The history of development bank of Ethiopia goes back to 1909 when the first attempts of its kind known as the societe narionale d’ ethiopie pour le development de l’ agriculture et de commerce (the society for the promotion of agriculture and trade) was established in the menelik II era. Since then the bank has taken different names at different times although its mission and business purpose has not undergone significant changes except for occasional adjustment that were necessitated by change in economic development policies of the country. For example, in 1975 when the socialism regime nationalized all the privately owned banks, the development bank of Ethiopia was merged with the investment bank to form the agricultural and industrial development banks. After that it was renamed to development bank of Ethiopia. It is established to spur the national development agenda. The bank’s focal point is the provision of customer focused lending to viable projects in line with government priority areas by mobilizing fund from domestic and foreign sources while ensuring its organizational
Open Document