The effect of bank regulation on profitability and liquidity of private commercial banks in

Independent Variables	Dummy variable	before and after the bill purchase requirement	DUM	-
-
Legal Reserve Requirement	Reserve Account in NBE to total deposit	LRR	-	+
Equity Investment	Log of Ratio of total amount of investment except NBE Bill /Capital	INV	+	-
Capital Requirement	Log of Paid capital	CR	+	+
Capital Adequacy	Equity / total Asset	CA	+	-
	Deposit Fund	Deposit/total loan and advance	DF	+	-
	Management Efficiency	Operating Expense/Total Asset	ME	-	-

CHAPTER FOUR

EMPIRICAL FINDINGS AND DISCUSSIONS

In this section results on impact of NBE regulations on the profitability and liquidity of private commercial banks in Ethiopia is presented. The empirical evidence of the impact of NBE regulations on the profitability and liquidity of private commercial banks in Ethiopia is studied based on panel data, where all the variables are observed for each cross sectional and each time period. The study has a time series segment spanning from the period 2008 up to 2017 and a cross section segment which considered seven private Ethiopian commercial banks, Awash International Bank, Dashen Bank, Bank of Abyssinia, Wegagen Bank, United Bank, Nib International Bank Cooperative Bank of Oromia. Moreover, this chapter deals with the results of study which include descriptive statistics of variables, correlation results of variables, the test of CLRM assumption and regression analysis of independent variable on the dependent variable

The descriptive statistics for the dependent and independent variables for seven private commercial banks of Ethiopia from year 2008 to 2017 with a total of 70 observations are presented below.

1. Descriptive Statistics Table 4.1 Descriptive Statistics