Ethiopian banks boost economic growth by lending to key sectors.
The article investigates what factors influence how much money private banks in Ethiopia lend out. They looked at data from seven banks over 21 years. The size of deposits, credit risk, investments, loan rates, GDP, and inflation all affect how much banks lend. Higher deposits and GDP mean more loans, while high inflation and low liquidity ratios mean less lending. The study suggests that focusing on these factors can help improve the economy and reduce unemployment.