Abstract:
The thesis delves into the critical role of commercial banks in economic
resource allocation, particularly focusing on Sub-Saharan Africa and East Africa, and
subsequently zooming into the banking landscape of Afghanistan. It discusses how
the profitability and financial health of commercial banks impact economic
expansion and stability, both globally and in specific regions like Sub-Saharan Africa
and Afghanistan.
The thesis aims to explore the factors influencing the profitability of
commercial banks, including internal and external variables, such as macroeconomic
conditions and bank-specific characteristics. It highlights the significance of
understanding and analyzing bank financial performance for economic development,
stability, and compliance with international standards. In Afghanistan's context, the
study aims to address the challenges faced by Afghan banks, such as restricted access
to external markets and lower profitability compared to foreign banks, and identify
factors contributing to their financial health.
The objectives include assessing the utilization of profits in Afghan banks
and identifying key determinants of their financial performance, such as capital
adequacy, customer base, management efficiency, and political stability. Overall, the
thesis seeks to contribute to a better understanding of the dynamics of commercial
banking and its implications for economic growth and stability, particularly in the
context of developing nations like Afghanistan.
Keywords: Financial performance, Commercial banks,. Capital adequacy, Customer
base, Political stability, Management efficiency
