Browsing by Author "Ababu, Bikila"

Now showing 1 - 1 of 1
  • No Thumbnail Available
    Item
    Regulation of Electronic Banking in Ethiopia: The Analysis of Legal Framework
    (AAU, 2019-06) Ababu, Bikila; Abay, Solomon (PhD)
    The rapid development of technology has greatly affected the fate of human life including the financial sector. In the banking context the technological advancement has changed how banking products and services are delivered, the point of contact of the customers with the baking service providers, and the structure of market actors. E-banking i.e. the delivery of banking products and services through electronic channels offers ample opportunities to the customers, the banking organizations and the overall economy. Not only does they present opportunities to the parties involved e-banking system also pose a number of risks. Hence, in order to harness the benefits the e-banking systems offers the possible risks attached with it have to be clearly identified and managed. The financial regulators main duty in this regards is to balance the need for expansion innovation against the possible risks that may emanate from the innovations. The e-banking system in Ethiopia is at nascent stage but with enabling regulation and active participations of all the stakeholders there is a prospect for its growth. The Ethiopian government has undertaken different initiatives to effectively regulate the e-banking initiatives. This research work has analyzed the e-banking regulatory structure in Ethiopia governing all e-banking platforms commonly and recommends the need to reform the sector further. There is a need to further strengthen the regulatory framework in the areas of e-banking security, contractual enforcement, consumer protection, market competition, and supervision of the third party service providers by further reforming the legal set-up and institution arrangement. The Ethiopian government has to introduce further reforms to better build the capacity of the telecommunications sector, introduce tailored laws to better protect the rights of financial services consumer including e-banking services and set up proper institutional structure to regulate and supervise it. The financial regulator NBE shall take the leading role in facilitating the expansion and growth of e-banking system in the country. It shall provide the necessary guidance specially in ensuring the security of the e-banking system and work in tandem with the concerned organs, and enhance its regulatory capacity from time to time including the utilization of technology to effectively and efficiently undertake its regulatory function.