Analysis of the determinants of Banking agents’ Performance: The Case of Commercial Bank of Ethiopia Bole District
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Date
2025-08
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Addis Ababa University
Abstract
This study examined the determinants of banking agent performance for the Commercial Bank of Ethiopia (CBE) within the Bole District of Addis Ababa. The research identified key factors
influencing agent success, drown up on a theoretical framework encompassing Innovation Theory, Agency Theory, Perceived Risk Theory, Transaction Cost Theory, and Bank-Led Theory.
A quantitative methodology was employed, utilizing structured questionnaires to collected data from a sample of CBE banking agents selected through stratified sampling. The study examined
the impact of agents’ banking knowledge, infrastructure, financial costs, and bank-to-agent location on agent performance. By analyzed this data using SPSS, the research seeks to provide
insights into how CBE can optimize its agent banking model to enhance agent effectiveness and contribute to broader financial inclusion goals within Ethiopia. The findings indicated that agent
performance is positively impacted by infrastructure and agents’ knowledge, and negatively by transaction cost and bank-to-agent distance. The research was expected to inform policy
recommendations aimed at improving agent training, strengthening network infrastructure, reducing financial burdens on agents, and enhancing awareness creation measures. The study
acknowledges the limitations of sampling and calls for further research to validate the findings and explore the issue of agent banking in diverse contexts.
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Keywords
Infrastructure, Transaction cost, Agency banking, Bank-to-agent distance