Financial Sector Development and Economic Growth in Ethiopia: Literature Review

Abstract

The financial sector and its role in the process of economic development have attracted notable attention since the early 1990s. Long-term sustainable economic growth depends on the ability to raise the rates of accumulation of physical and human capital, to use the resulting productive assets more efficiently, and to ensure the access of the whole population to these assets .right now, Ethiopian financial sector is not serving needs of the economy Most of the economies in the country didn’t efficiently mobilize their domestic financial resources These phenomenon’s can in part be attributed to lack of a well developed financial sector (such as capital markets, banks, and other financial institutions) and the poor economic policies and incompetent “institutions” in the country. This article presents the general overview of Financial Sector Development and Economic Growth in Ethiopia by reviewing national bank of Ethiopian annual reports of the year 2008-2018 and articles on development of financial sector in Ethiopia for open discussion.

Keywords:Financial Sector, Economic Development, National Bank of Ethiopian Annual Reports, Ethiopia

DOI: 10.7176/RJFA/10-5-01

Publication date:March 31^st 2019