The Effect of E-Banking on Financial Performance: The case of Commercials Banks in Ethiopian

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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


Project Submitted To Mba Program For Partial Fulfillment Of The Requirements For The Degree Mba In Financial Service


E-Banking, Financial performance, IT investment, Panel Data Analysis