Saint mary’s university

Scope and Limitation of the Study

The study is limited to examine the impact of the regulatory variables on banks performance, which are applied by the National Bank of Ethiopia. Specifically, the paper limits itself in determining the impact of NBE bills purchase by private banks, credit cap and reserve requirements on performance of private banks in Ethiopia.

3. Significance of the Study

The study has the following significances for policy makers, companies and other stakeholders:

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  It will enable policy makers to take deep-considerations on the impact regulations have on banks performance during policy formulation and implementation
  
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  The results of this study will create awareness for banks about the effect of NBE regulation on their profitability; give the opportunity to influence NBE by providing feedback during policy formulation and implementation.
  
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  In addition to the above points, the NBE can use the study or the recommendations included in this paper as a base to improve its policy\regulation after carefully evaluating its impact.
  
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  The research can be a good resource for other researcher interested on the issues raised by the author.
  

3. Organization of the paper

This research report is organized in five chapters. Chapter one provides the general introduction about the whole report. Chapter two describes the review of related literatures. Chapter three provide detail description of the methodology employed by the research. Chapter four contain data presentation, analysis and interpretation. Finally, the last chapter concludes the total work of the research and gives relevant recommendations based on the findings.

Chapter two

2. Literature Review

This chapter summarizes the information from other researchers who have carried out their research in the same field of study. The specific areas covered here are theoretical review. The chapter is organized according to specific objectives in order to ensure relevance to the research problem.

1.