Repressed banking industry: The context of emerging market

Abstract

The present paper uses a qualitative approach with data obtained from secondary sources on the sequence and timing of financial liberalization in Ethiopia. The approach is purely qualitative, which simply examines the sequence of financial sector liberalization measures introduced in Ethiopia between 1992 and 2014. The study aims to identify the financial sector liberalization measures introduced and critically evaluate the timing and sequence of these programs implemented in Ethiopia. In light of documented empirical findings, it was found that the financial liberalization programme in Ethiopia was not properly and timely sequenced, and as a result, the Ethiopian financial sector has remained underdeveloped when compared to sub-Saharan African standards and its neighbouring countries. The regulatory fences, especially the restriction of foreign bank entry, should be seriously reconsidered and such fences shall be soon uprooted and steps towards the establishment of the financial market should be taken.

Keywords: Financial Liberalization, Foreign Banks Entry, Financial Sector, Ethiopia

Authors’ individual contribution: The Author is responsible for all the contributions to the paper according to CRediT (Contributor Roles Taxonomy) standards.

Declaration of conflicting interests: The Author declares that there is no conflict of interest.

JEL Classification: E02, E40, E44, E58

Received: 18.02.2020
Accepted: 03.06.2020
Published online: 11.06.2020

How to cite this paper: Fekadu, G. W. (2020). Repressed banking industry: The context of emerging market. Corporate Governance and Organizational Behavior Review, 4(1), 54-60. https://doi.org/10.22495/cgobrv4i1p5