Browsing by Author "Jemal Deybaso Hadji"

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    Determinants of Financial Performance of Interest Free Banking Business of Ethiopian Commercial Banks
    (A.A.U, 2021-01) Jemal Deybaso Hadji; Worku Temesgen
    Interest free banking is among the emerging trends in the global economy and the fastest growing industry worldwide. It is a banking system which is in consonance with the spirit, ethos and value system of Islam and governed by the principles laid down by Islamic Shari'ah. It is started in Ethiopia on 2013. This study examines the determinants of financial performance of interest free banking business by commercial Banks in Ethiopia considering three internal(bank size, liquidity management and operating efficiency) and two external (Inflation and GDP) factors. Return on average asset as a proxy of profit will be used to measure financial performance. To achieve this objective, quantitative research approach and descriptive research design was used. The data obtained was from secondary source using annual financial reports. Five years panel datafrom 2015/16- 2019/20 of four purposively sampled commercial banksthat are pioneer in starting the business and with a well organized data were examined by running regression analysis using E.Views software 9.0 from total population of eleven banks. Based on the findings of the study, liquidity management has positive and significant impact on the financial performance of Ethiopian Banks operating Interest free Banking business, while the rest variables have insignificant impact on financial performance of these banks