Risk-Taking Behavior and Trend Analysis of the Ethiopian Banking Sector: An Observation of Selected Banks


Authors : Temesgen Ayenew Birhan; Dr. Jasmindeep Kaur

Volume/Issue : Volume 9 - 2024, Issue 2 - February

Google Scholar : http://tinyurl.com/c7jkyc59

Scribd : http://tinyurl.com/mr3eddm6

DOI : https://doi.org/10.5281/zenodo.10725508

Abstract : After the occurrence of the 2008 financial crisis studying the risk-taking behavior of banks taking prior attention by researchers. The risk-taking behavior of commercial banks refers to the tendency of banks to assume high or low risk in their operating activity. understanding and managing bank risk-taking behavior is crucial for the stability of the banking sector and the broader economy. purpose of this study was to make a trend analysis of risk-related factors for the bank operating in Ethiopia. Additionally, the researcher assessed the risk-taking intention of selected banks between the years 2016-17 and 2020-21. The trend analysis showed that the risk-taking behavior of banks was not the same. It found that inconsistency results, in both the upward and downward conditions existed. The result also indicates that on average the bank stability of United Bank is higher than the remaining selected banks.

Keywords : Risk-Taking, Trend Analysis, Bank Stability, Financial Crisis.

After the occurrence of the 2008 financial crisis studying the risk-taking behavior of banks taking prior attention by researchers. The risk-taking behavior of commercial banks refers to the tendency of banks to assume high or low risk in their operating activity. understanding and managing bank risk-taking behavior is crucial for the stability of the banking sector and the broader economy. purpose of this study was to make a trend analysis of risk-related factors for the bank operating in Ethiopia. Additionally, the researcher assessed the risk-taking intention of selected banks between the years 2016-17 and 2020-21. The trend analysis showed that the risk-taking behavior of banks was not the same. It found that inconsistency results, in both the upward and downward conditions existed. The result also indicates that on average the bank stability of United Bank is higher than the remaining selected banks.

Keywords : Risk-Taking, Trend Analysis, Bank Stability, Financial Crisis.

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