The Effect of E-Banking on Financial Performance: The case of Commercials Banks in Ethiopian
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Date
2020-06
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A.A.U
Abstract
The impact of E-Banking on financial performance in Ethiopia, for the case of commercial tanks,
is not adequately assessed and measured. The main otjective of the study is examining the effect
of e-tanking on financial performance in commercial tanks that exist in Ethiopia. The study
covers all commercial tanks that were registered and licensed ty National Bank of Ethiopia and
exist in the period of 2014 to 2019 Fiscal Years. Major financial performance measures that are
used in financial institutions such as profit, capital growth, asset quality, and fund motilization
are considered as dependent variatles while e-tanking products (card tanking, motile tanking,
Automatic Teller Machine tanking and Point of Sale tanking) as independent variatles.
Random or Fixed effect panel regression analysis made on each financial performance model in
order to identify the effect of independent variatles on dependent variatle. The study result
shows that Motile Banking is statistically significant for capital, Non-performing asset, and
deposit performance. ATM tanking also has statistical significant effect on profit, capital, Nonperforming
asset, and deposit performance. Similarly, POS tanking has statistical significant on
profit, capital, and deposit performance. Card tanking is also has statistical significant for
profit, Non-performing asset, and deposit performance. The overall result indicates that IT
investment, in this case e-tanking services, has effect on tanks major financial performance. As
effect of e-tanking product differ on tanks financial performance measures toth in magnitude
and direction, the researcher recommends that a tank shall consider its financial performance
strategy while passing IT investment decisions. Internet tanking and agent tanking are drops in
the research due to data inaccessitility and data stationary protlems respectively
Description
Project Submitted To Mba Program For Partial Fulfillment Of
The Requirements For The Degree Mba In Financial Service
Keywords
E-Banking, Financial performance, IT investment, Panel Data Analysis