Abstract:
The main Objective of this study is to examine the factors affecting effectiveness of financial
performance of banks. To identify the major factors and the degree of impact, this study used both
descriptive and multiple regressions. According to the analysis result, some of the data were significant.
Pearson correlation coefficient reveals significant correlation coefficient of the factors with the
effectiveness of bank financial performance management system. Moreover, the result of the multiple
regression showed that the factors have an effect on bank financial performance return on asset capital
adequacy and LOGAGE negative effect on bank performance asset quality liquidity, management
capability positive effect on bank performance. Based on the study findings, the researcher forwarded
recommendations and reported the result to the banks. Commercial banks should give high emphasis on
the return asset, return on equity, liquidity possession, asset quality, management capability in order to
attain the effectiveness of bank financial performance.
