What are the challenges and prospects of financial markets particularly secondary markets in Ethiopia?

What are challenges for secondary market in Ethiopia?

The result revealed that the reluctance of the government, inadequate laws and regulations, insufficient technological infrastructure, and low level of public awareness as a challenge of establish stock market in Ethiopia.

What are the financial markets in Ethiopia?

The four main financial markets are the share or equity market, the fixed interest or bond market, foreign exchange market, and the derivatives market.

Is there secondary market in Ethiopia?

Ethiopia, though having growing markets for primary issues of equity and debt securities, does not have a secondary market and as a result is not reaping the benefits.

What are the problems associated with secondary market?

Secondary market consists of both equity as well as debt markets. Description: Securities issued by a company for the first time are offered to the public in the primary market. Once the IPO is done and the stock is listed, they are traded in the secondary market.

What are the potential challenges for establishing financial markets in Ethiopia?

Researchers raised absence of an organized capital market; state dominance of ownership; inadequate shareholder protection in laws; non-competitive market structure etc are considered as the main challenges or hindrances for the development of good corporate governance practices in Ethiopia post 1974 epochs and most of …

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Is there stock market in Ethiopia?

Ethiopia has been progressively opening its banking sector since 2016. As the country moves ahead with its liberalisation process under Abiy Ahmed’s leadership, the pace of reform has picked up.

What are 4 types of financial institutions?

The major categories of financial institutions include central banks, retail and commercial banks, internet banks, credit unions, savings, and loans associations, investment banks, investment companies, brokerage firms, insurance companies, and mortgage companies.

What are the types of financial market?

Types of Capital Markets

  • Debt Market. Debt market is the financial market where investors buy and sell debt securities, typically in the form of bonds. …
  • Equity Market. Equity market, often known as the stock market or share market, is a place where shares of companies or entities are traded. …
  • Forex Market. …
  • Derivatives Market.

Which bank is best in Ethiopia?

Best Banks in Ethiopia for 2021

  • Bunna International Bank 2017/2018 Fiscal Year. …
  • Abay Bank 2017/2018 Fiscal Year. …
  • Berhan Bank 2017/2018 Fiscal Year. …
  • Zemen Bank 2017/2018 Fiscal Year. …
  • Enat Bank 2017/2018 Fiscal Year. …
  • Addis International Bank 2017/2018 Fiscal Year. …
  • Debub Global Bank 2017/2018 Fiscal Year.

Does Ethiopia Need secondary financial market?

Ethiopia, though having growing markets for primary issues of equity and debt securities, does not have a secondary market and as a result is not reaping the benefits.

What is Ethiopia’s secondary market?

Ethiopia is set to establish a Secondary Capital Market for local currency and Treasury bills in about a year. … In secondary capital markets, existing securities are sold and bought among investors or traders, usually on a stock exchange (SE), over-the-counter (OTC), or elsewhere.

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What are the major financial institution in Ethiopia?

The Formal Sector The major formal financial institutions operating in Ethiopia are banks, insurance companies and microfinance institutions.

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