• Habtamu Gemeda Wagno
• Navkiranjit Kaur Dhaliwal
• Rajeev Kansal

The objective of this study is to examine the structure of the financial system in Ethiopia by reviewing the institutional framework related to the financial affairs of the country. The findings of the study indicate that the design of the financial system of Ethiopia is bank based, comprises a set of formal, semi-formal and informal institutions and markets and dominated by state ownership. Besides to this, the structure of the financial system of Ethiopia lacks the key features of modern financial systems such as an organized securities exchange market and the participation of foreign investors in the financial sector of the country. Moreover, capital and derivative markets and pension fund institutions are at low-level development and not properly integrated into the financial system of the country. To this end, authorities have to work on strategies for institutional integration of market players, introduce organized exchange market for primary and secondary securities, and strengthen the regulatory and supervisory capacities to ensure the development of a sound financial system in the country.

Ethiopia, Financial System, Financial Markets, Structure, Exchange Market, Formal Financial Institutions

"The Structure of Financial System in Ethiopia", International Journal of Emerging Technologies and Innovative Research (www.jetir.org), ISSN:2349-5162, Vol.6, Issue 2, page no.343-353, February-2019, Available :http://www.jetir.org/papers/JETIR1902441.pdf

"The Structure of Financial System in Ethiopia", International Journal of Emerging Technologies and Innovative Research (www.jetir.org | UGC and issn Approved), ISSN:2349-5162, Vol.6, Issue 2, page no. pp343-353, February-2019, Available at : http://www.jetir.org/papers/JETIR1902441.pdf